FX.co ★ Burning Forecast 02/16/2018

Burning Forecast 02/16/2018

EURUSD: Strong signal upward.

There were no important news. The market continues to win back expectations of accelerating inflation in the US - and raising the Fed's rates and profitability.

Through a somewhat peculiar and non-classical logic, this leads to a fall in the dollar. (According to the "classic" everything should be the opposite - the expectation of higher yields and rates should lead to stronger currencies).

Nevertheless, overnight, the euro's rate broke through a significant high of 1.2525, and then a breakthrough at 1.2540 - the euro's highest since 2014.

The technical goal is 1.2630.

We are standing at 1.2515, stop at 1.2470.

Buy on a rollback of 1.2525, stop at 1.2480, the target of 1.2630.

The downward level is 1.2205, however it will take some time for it to be closer to the level for selling.