Market activity picked up as expected in the 2nd week of the New Year with major developments across the forex world. Political tensions in the Korean Peninsula eased with North Korea agreeing to send athletes to the Winter Olympic Games holding in the South, signifying a further thaw in the relationship between the two countries. The US also made some strategic political moves, suspending joint military drills with the South, extending the participation of the US in the nuclear deal signed with Iran and giving the green light to holding talks aimed at extending its participation in NAFTA.
Oil prices also continued their gradual push to the $70 mark, while the focus of market participants is shifting to possible monetary policy adjustments outside the US. What does the current week hold for the major currencies and commodities?
Here are the supply & demand levels for this week
After dropping to lows of 1.19152 on the first trading day of the week, the Euro stormed to good gains in the last two trading days of the week against the US Dollar, closing at 1.22026. The Euro was boosted by talk of the European Central Bank getting set to taper monetary stimulus package, as well as a political breakthrough in Germany with the signing of an agreement to form a grand coalition between Chancellor Angela Merkel’s party and the Social Democrats.
Sentiment for the Euro heading into the week remains bullish on the back of these evolving fundamentals.
EUR/USD Daily Supply & Demand zones:
EUR/USD 4H Supply & Demand zones:
EUR/USD 1H Supply & Demand zones: