EUR/USD Forex Signal: Rising Wedge, Bearish Divergence Forms

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The EUR/USD price pulled back slightly after the relatively weak German economic data.

It retreated to a low of 1.086, which is where it has been in the past few days. This price is a few points below this year’s high of 1.0933.The main focus among investors is the upcoming Fed and ECB decisions scheduled for Wednesday and Thursday, respectively. Being the first decisions of the year, these meetings will set the tone for what to expect in the coming months.

Bond yields have gained, with the 10-year and 5-year yields rising to 3.55% and 3.67%, respectively. This is likely a reflection that the market expects that the Fed will sound a bit hawkish in this meeting. The bank has the motivation to be hawkish since the market has gotten ahead of its views, with some analysts suggesting that the bank will cut rates later this year.

 

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