EURUSD hovering around balance line

26 March, 2019

On Monday the 25th of March, trading on the euro closed up. In the US session, the EURUSD pair hit an intraday high of 1.1332. The pair was propped up by a broadly weaker dollar.

The pair recovered to the LB balance line, as well as the 45th degree and 50% of the drop from 1.1391 to 1.1273. The euro has rebounded from the 45th degree and at the time of writing is trading at 1.1307.

I’ve shown my predictions for the pair on the chart resulting from my analysis. It’s unclear whether the euro will continue rising, or whether downside pressure will come back in force given that traders are still cautious since the US bond yield curve inverted.

Experts having been keeping an eye on the difference between long-term and short-term (around 3 months) bond yields. The difference between 10-year and 3-month yields has now entered negative territory, while this has yet to happen between 10-year and 2-year yields.

Chicago Fed President Charles Evans yesterday said that despite justified nerves over the yield curve inversion, he is still confident about the strength of the US economy.

Trader attention today will turn towards the UK parliament, where another round of votes is set to take place. Keep an eye on the yen and US10Y bond yields. In my forecast, I’m expecting a breakout of the trend line followed by a recovery to the 67th degree at 1.1353.


Source link   Presented by Alpari

EURUSD consolidates around the trend line

On Thursday the 13th of June, trading on the EURUSD pair closed down. The rate dropped after the breakout of the 1.1285 support (trend line, lower...

EURUSD: correction following rally

On Friday the 7th of June, trading on the euro closed up. The single currency rose to 1.1348 in light of a broadly weaker greenback following the US...

EURUSD: bears gearing towards 1.12

On Wednesday the 5th of June, the euro closed the day down against the US dollar. The bulls erased all their gains after having pushed...


EUR/USD eases from tops near 1.1280

EUR/USD loses further momentum on poor data. EMU flash CPI rose 1.5% YoY during May. Powell, Factory Orders next of relevance in the US calendar...

Expected decline to the balance line

The major currencies showed mixed dynamics against the US dollar last week. The biggest drop came from the pound (-0.65%), followed by...

Bears have broken the trend line

On Tuesday the 14th of May, trading on the euro closed down. The EURUSD pair dropped from 1.1243 to 1.1201. The 45th degree provided some...


EUR/USD looks to German CPI

The pair climbs to fresh weekly highs beyond 1.1200. EMU advanced Q1 GDP surprised to the upside. German flash inflation figures next of relevance...

USD bid hgher as new home sales rises

The USD traded higher on Tuesday, rising to a six-week high. The new home sales report showed a 4.5% increase on a month over month basis, beating...

EURUSD expect a test of 1.1230

With a thin market, the bulls managed to push through to 1.1262. A correction occurred within a relatively narrow price range. At the time of writing, the...

  


Share it on:   or