Euro recovering on back on the pound

22 March, 2019

On Thursday the 21st of March, trading on the US dollar index closed up. The DXY completely recovered Wednesday’s losses, which were incurred after the Fed’s interest rate decision and subsequent monetary policy statement along with Jerome Powell’s press conference.

This significant correction was driven by the pound’s collapse. The pound came under pressure over fears that the UK could leave the European Union without a deal. All eyes are now on the European Union, who must now approve a departure date for the UK.

The bulls were unable to keep up their defence of 1.1410. The pound’s collapse took its toll on all the major currencies. Although the single currency got some support via the EURGBP cross, the bulls were still forced back to 1.1343. Markets completely ignored the Bank of England’s meeting.

The bears have completely pared Wednesday’s gains, forming a bearish engulfing on the daily timeframe. This is a bearish candlestick pattern, and since the 1.1336 low wasn’t broken through, the bulls could have brought the rate back up to 1.1423.

As today is Friday, the upwards correction is limited to 50% (1.1403) of the large candlestick from the 20th of March. Yesterday, this level acted as a key support for the bulls, as anyone who opened a long position above this level suffered losses. The drop intensified as traders closed their long positions.

The pound is showing decent growth today. We’re keeping an eye on Brexit news. Barring any negative headlines from the UK or EU, the euro could gather some momentum. We’ve had a lot of swings this week thanks to the FOMC and Brexit.


Source  
Sentiment on the euro switching to bearish9 Jun, 2020  

The centre of attention is ECB President Christine Lagarde's speech. She already talked about the bank's monetary policy following their meeting...

Christine Lagarde may put pressure on bulls27 Feb, 2020  

According to the forecast, today I am considering a fall down to the 45th degree - 1.0837. There are several reasons for this. The first is that a bearish...

Euro to remain under pressure24 Jan, 2020  

On January 23, the euro was down at the close of trading. Bulls lost ground during the speeches at the ECB meeting, including one from ECB President...


EURUSD: consolidation expected20 Jan, 2020  

Most major currencies are trading in the black, and the economic calendar is scarce. A spike in volatility may be caused by the head of the ECB...

Euro recovers on news from China18 Nov, 2019  

By the end of last week, almost all major currencies closed in the black. The highest growth against the US dollar was shown by the New Zealand dollar...

EURUSD: correction to 1.1060 expected11 Nov, 2019  

On Friday the 8th of November, trading on the EURUSD pair closed at 1.1018. The drop, which started at the beginning of the European session, was mostly...


Euro could drop in response to ECB minutes22 Aug, 2019  

All eyes are on the Jackson Hole symposium, which starts today and will go on until the 24th of August. The heads of central banks will convene...

Gold market upward trend12 Aug, 2019  

When risks increase for the global economy, more and more investors are choosing to place their funds in gold and other precious metals. Even...