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Hello, dear traders! On Monday, after the rebound from the correction level of 161.8% at 1.1357 the EUR/USD pair made a reversal in favor of the US currency and began to decline towards 1.1250. In the second half of January 10, the pair made a reversal in favor of the EU currency and almost returned to 1.1357. Currently, the reversal in favor of the US currency is carried out near this level again. Thus, the pair continues to trade in the sideways channel for a month and a half. Therefore, I conclude that the traders' sentiment concerning the EUR/USD pair remains neutral. Moreover, the EU currency may fall again during the day. The yesterday's information background was very weak. Only one significant report was released. The EU unemployment rate has decreased from 7.3% to 7.2%. However, the euro was not very optimistic about it. Traders are still uncertain about the direction of the pair's trading. Besides, it is essential to wait for that to happen.
ECB president Christine Lagarde will give a speech this morning and Fed Chair Jerome Powell will deliver a speech this afternoon. These events will probably change the situation in the pair. However, I do not count on it. The pair is stuck in the sideways corridor, and only some very important news could help the pair to get out of it. The text of Jerome Powell's speech to the Senate is already known. It was released some hours before the speech itself and it is very common. The text contains no significant facts that could change the traders' sentiment to the dollar. Powell says that the Fed will use all available methods to curb inflation. He also notes that the US economy is growing significantly and that the labor market is positive. This information was mentioned many times before. Christine Lagarde's speech may be more significant as she has not delivered speeches for some weeks. Traders also expect the ECB to use aggressive methods. However, there are few reasons to tighten monetary policy at the moment.
On the 4-hour chart, I rebuilt the half-down-side corridor slightly, and now it turned out to be just sideways. The pair's quotes remain near its upper boundary. However, there is not even a rebound from it yet. Therefore, traders do not have important signals. If the pair closes above the corridor, the euro growth currency is possible. Besides, the pair should overcome the Fibo level of 127.2% at 1.1404. There are no divergences in any of the indicators today.
US and EU economic news calendar:
EU - ECB President Christine Lagarde will give a speech (10-20 UTC).
US - Federal Reserve Board of Governors Chairman Jerome Powell will deliver a speech (15-00 UTC).
On January 11, the EU and US economic calendars contain only one entry each. I think more attention should be focused on Christine Lagarde's speech. However, in general the informational background will have little effect on traders' sentiment today.
EUR/USD outlook and recommendations for traders:
After the pair made a rebound from the level of 1.1357 on the hourly chart, it was possible to sell the pair with the target of 1.1250. However, the pair is moving downwards very reluctantly. I recommend buying the pair if it closes above both side corridors with the targets of 1.1450 and 1.1606.
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