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Jan 10 - 08:55 AM

EUR/USD - COMMENT-FX Traders Beware EUR/USD Usually Drops In January

By Martin Miller  —  Jan 10 - 07:00 AM

Those that expect a decline in EUR/USD, something it usually does in January, should look very closely at the daily technical chart.

EUR/USD seasonal performance since 2000 shows it has fallen in January for 15 of the past 24 years.
However, seasonality patterns should not be considered in isolation.

EUR/USD needs a break and daily close under the 1.0875 Fibo, a 38.2% retracement of the 1.0448 to 1.1139 (October to December) EBS rise, in order to increase the odds of it closing in negative territory in January.
EUR/USD's 14-day momentum remains negative, reinforcing the overall bearish market structure.

The dollar edged lower on Wednesday in cautious trading as investors awaited U.S. inflation data later this week, helping to underpin EUR/USD in the short-term.
A EUR/USD break and close above the daily tenkan line at 1.0981, the mid-point of the last nine trading sessions, could well put January's seasonal trend in jeopardy.

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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