EURUSD: sideways motion expected

11 April, 2019

On Wednesday the 10th of April, trading on the euro closed up. Volatility was high on all currency pairs with the euro, especially during ECB President Mario Draghi’s speech. During his remarks, the euro shed 56 pips to reach 1.1230. This was a purposeful decline, but by the end of the day, the bulls recovered all their losses on the back of a weakened US dollar.

The European Central Bank’s meeting ended with monetary policy unchanged and interest rates remaining at their current levels. During his press conference, Mario Draghi warned about risks to economic growth in the Eurozone amid geopolitical uncertainty. The regulator has downgraded its inflation forecast for the Eurozone, and believes that some significant economic stimulus is needed. Details of the new TLTRO program will be announced in the coming meetings.

The drop and subsequent rebound both amounted to 45 degrees. The payrolls report and Mario Draghi’s press conference are now behind us. Following an EU summit, a new Brexit date of the 31st of October has been approved. Now that this has been resolved, traders will turn their attentions towards the US and China, as well as US bond yields.

After yesterday’s intraday spike, I expect a drop from the 45th degree to 1.1256. If the pair rebounds from here and returns to 1.1280, I expect to see a further rise to 1.1310. The LB line is acting as an intermediate support at 1.1268.


Source link   Presented by Alpari

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...

EURUSD: the Easter holidays continue

Most of the majors closed last week down against USD. The Swiss franc fell by 1.15%, the Kiwi dollar by 1.12%, the pound by 0.55%, the euro by 0.49%...

EURUSD: bulls have returned to 1.13

On Tuesday the 16th of April, trading on the euro closed down. The EURUSD pair was knocked off its perch of 1.1314 by Reuters, which reported...


EURUSD: bulls ready to test 1.13

On Thursday the 11th of April, trading on the EURUSD pair closed down, with the single currency dropping to 1.1250. To me, this seemed to be...

EURUSD stabilised at 1.12 ahead of ECB

On Tuesday the 9th of April, trading on the euro closed slightly down. On the back of Brexit rumours and the rising crosses, the EURUSD pair jumped...

EUR/USD pushes higher to daily highs

The pair's upside clinched the 1.1250/55 band on Monday. The selling bias around the buck supports the up move. The Sentix index improved...

  


Share it on:   or