EURUSD – Fed and ECB Monetary Policy Contrasting Courses

17.01.2022

Important events today:

USA is a bank holiday.

Rising prices to areas of resistance can be used to place short positions in the expectation that the medium-term bearish trend will continue. Less than two weeks are left until the next meeting of the US Federal Reserve, and this event should strengthen the dollar well, as the Fed will actively raise interest rates and reduce the volume of assets on the balance sheet in 2022.

The European Central Bank, on the contrary, planned to increase assets on the balance sheet and maintain the current rate. The ECB has seen low inflation in the EU for a long time and will therefore proceed with caution. Contrasting monetary policies of the Fed and the ECB will have a good impact on the growth of the US dollar.

Recommendation: Sell 1.1440/1.1480 with TP 1.1370.