The dollar held on to broad gains on Thursday, the last trading day of 2015, despite the release of disappointing U.S. economic data. With the first U.S. rate hike since 2006 out of the way, the focus is now on the pace of future rate increases. The Fed, from its forecasts, is anticipating four rate hikes next year.
Initial bias this week stays on the downside with 21 and 55 EMA convergence on the 4-hours time-frame and an anticipated divergence to the south, more sell off could be seen in the pair. Also SSRC oscillator shows more selling momentum is building up and am expecting further decline to 1.0801 support first. A sustained break of 1.0801 support will confirm bearish trend resumption back to 1.05600/1.05133 demand zones.
However on the upside a break of 1.10582 high will dampen the bearish picture and continue the pair’s up-rise to 1.13844/1.14926 supply zones.