How the dollar will react to Trump's Inauguration.
The euro/dollar rally has been going on for several months now, the dollar exchange rate is quite unstable, forex trend changes literally in minutes.
But it is precisely this fact that helps many traders make money on short-term euro/dollar transactions.
One of the reasons for the sharp jumps in the exchange rate is news from the United States, namely about the political situation within the country; one of the most significant events will take place today.
Today at 17.30 Moscow time the inauguration of the new President of the United States of America should take place.
The event itself is unlikely to affect the exchange rate of the US dollar, but the mass demonstrations planned for this day could definitely lead to a weakening of the dollar.
It is difficult to predict what such performances will lead to; this could definitely cause a sharp decline in the value of the dollar.
Therefore it makes sense to put pending orders to buy the eur/usd pair above the level of 1.065, which will work if the dollar exchange rate sharply goes down.