Yuriy Ukazkin
Today, on July 17th, the US Dollar is trading within a pretty tight price range against the common European currency tight in advance of another inflation report coming from the Eurozone. Yesterday, on July 16th, the USA imposed even tougher sanctions on Russia, thereby blaming it for escalating the Ukrainian conflict. The EU is expected to support those sanctions.
Meanwhile, today's trading session may turn bearish for European stock markets, thereby pushing the common currency higher, as investors are likely to react to the new package of sanctions against Russia and some Ukrainian companies that may be responsible for supporting and escalating the armed conflict in the Eastern part of Ukraine.
At the same time, the Russian stock market has already reacted t the negative news with a decline. In particular, most Russian stock indices lost almost 2% of their value at the beginning of the European trading session.
Apart from the geopolitical situation in Eastern Europe, the markets are going to focus their attention on the forthcoming inflation figures coming from the Eurozone. The common currency is currently under pressure thanks to the recommendations made by the IMF. In particular, Mario Draghi and his central bank are recommended to start quantitative easing even after easing the ECB's monetary policy in during the latest meeting in June.
EURUSD Intraday Prospects
According to the comprehensive analysis made by Masterforex-V Academy, the H1 chart of EURUSD is still indicating bullish mid-term bias. Therefore, the currency pair may well continue the downtrend today, especially if the Eurozone inflation figures come out worse than expected. If this is the case, the USD index is probably going to gain some strength. If the price breaks below 1,3519 the next level to watch is 1,3503. Once it is broken as well, we are likely to se the price going down to 1,3472 and below.
If there is a bullish reaction, it may take place under the influence of European stock indices, which are likely to go down in this case. The closest level to watch is 1,3568. If the price breaks above this level, it is likely to go up to 1,3585.
According to the Binary Option Department of Masterforex-V Academy, today's binary option trading may help traders to gain a 70%-90% ROI on EURUSD trades. It is recommended to go short and purchase put options after bullish reactions. The recommended lifetime of the option is 1 hour.
Yuriy Ukazkin
