Technical Analysis

EUR/USD Price Analysis – March 25, 2024

By LonghornFX Technical Analysis
Mar 25, 2024
Eurusd

Daily Price Outlook

The EUR/USD currency pair has started the new week on a positive note, trading above the 1.0800 mark and gaining ground to reach around 1.0816. This upward trend can be attributed to several factors including the bearish US dollar, which was being pressured by the dovish Fed's stance on interest rates. In contrast to this, the suggestion of a potential interest rate cut by the ECB is generally negative for the EUR/USD pair, as it tends to weaken the Euro against the US Dollar.

FOMC’s Chair Powell Maintains View on Lower Inflation, Impact on EUR/USD

Despite the recent increase in the Consumer Price Index (CPI) indicating higher inflation, Powell suggests that the committee's outlook on inflation hasn't changed. They still perceive inflation as trending lower, meaning they anticipate a decrease in inflationary pressures over time. Powell stressed that if the job market unexpectedly worsens, the central bank is ready to lower interest rates.

This dovish stance from the FOMC, signaling a willingness to consider rate cuts in response to economic conditions, has put downward pressure on the US Dollar. Consequently, this has supported the upward momentum of the EUR/USD currency pair, as any hints of monetary policy accommodation tend to weigh on the value of the USD.

ECB’s Scicluna Suggests Rate Cut in April, Impact on EUR/USD

On the Euro front, a member of the European Central Bank (ECB) Governing Council, Edward Scicluna, hinted at the possibility of lowering interest rates in April. This suggests that the ECB might join other central banks in reducing rates to tackle economic issues, particularly stubbornly low inflation. The commentary reflects increasing speculation about the ECB's monetary policy direction, aiming to stimulate economic activity amidst challenges. If implemented, an interest rate cut could influence borrowing costs, encouraging spending and investment to boost economic growth in the Eurozone.

Moreover, Bundesbank President Joachim Nagel's remarks indicating a possible rate cut before the summer, possibly in June, have also contributed to expectations of monetary policy easing by the ECB. Therefore, these anticipations have weighed on the Euro against the US Dollar, as the possibility of lower interest rates tends to weaken the currency.

Investor Focus on Key Economic Indicators and Fed Speech, Impact on EUR/USD

Investors will closely monitor key economic indicators and speeches from Federal Reserve officials, including the Chicago Fed National Activity Index, US New Home Sales, and the Fed's Bostic speech scheduled for Monday.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

The EUR/USD pair experienced a marginal increase of 0.04%, closing at 1.0812. This movement highlights the currency's tentative steps towards recovery amidst fluctuating market sentiments. The day's trading centered around the pivot point of 1.0844, which, despite being slightly above the closing price, suggests a battleground for the pair's next direction.

Immediate resistance and support levels frame the short-term trajectory for the EUR/USD. Resistance levels are set at 1.0843, 1.0894, and 1.0944, providing clear targets for potential bullish momentum. Conversely, the pair finds robust support at 1.0762, with further cushions at 1.0733 and 1.0695. These levels will be critical in determining the EUR/USD's resilience or vulnerability to bearish pressures.

The technical landscape is further illuminated by indicators such as the Relative Strength Index (RSI) at 38, signaling the pair is nearing oversold territory. This suggests potential for an upward correction should buyers regain control. Moreover, the 50-Day Exponential Moving Average (EMA) at 1.0881 hovers above the current price, indicating that overcoming this barrier could solidify a bullish stance.

Given the technical analysis, a prudent strategy would involve placing a Buy Limit at 1.08008, aiming for a Take Profit at 1.08435 to capitalize on anticipated upward movements. A Stop Loss at 1.07666 would mitigate potential downside risk, aligning with a cautious yet opportunistic approach to the current market dynamics of EUR/USD.

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EUR/USD

Technical Analysis

EUR/USD Price Analysis – March 22, 2024

By LonghornFX Technical Analysis
Mar 22, 2024
Eurusd

Daily Price Outlook

During early European trading session on Friday, the EUR/USD currency pair has been experiencing a downward trend and hit the intra-day low around the 1.0816 mark. However, this decline is driven by the renewed strength of the US Dollar and higher US Treasury bond yields. Furthermore, the disappointing Eurozone Manufacturing Purchasing Managers' Index (PMI) data was seen as another key factor that put bearish pressure on the EUR/USD currency pair. Investors are closely monitoring the performance of the pair as they await key economic indicators and central bank statements.

Federal Reserve Signals Potential Rate Cuts, US S&P Global Composite PMI Moderates

On the US front, Federal Reserve Chair Jerome Powell suggested three possible interest rate cuts in 2024, lifting investor confidence and boosting market activity. However, the S&P Global Composite Purchasing Managers' Index (PMI) showed a slight decrease to 52.2 in March from the previous 52.5. Despite this, the Manufacturing PMI increased to 52.5, surpassing expectations, while the Services PMI fell to 51.7, lower than predicted.

Jerome Powell's rate cut hints boosted the USD, pressuring the EUR/USD pair downward. While the US PMI showed mixed results, any signs of US economic strength tend to strengthen the dollar against the euro.

Eurozone Manufacturing PMI Slips, Impacting EUR/USD Pair

In contrast to the US data, the Eurozone's Manufacturing PMI declined to 45.7 in March from the previous reading of 46.5, marking a three-month low. This disappointing figure fell short of the consensus forecast of 47.0. However, the Services PMI improved to 51.1 in March, beating expectations and indicating resilience in the services sector. Despite this mixed performance, the Eurozone PMI Composite rose to 49.9 in March, slightly surpassing expectations and signaling overall economic expansion.

Therefore, the Eurozone's weak Manufacturing PMI weighed on the EUR/USD pair, as it highlighted economic struggles. However, the improved Services PMI and Composite PMI have provided some support, indicating a mixed impact.

Upcoming Data Releases Could Impact EUR/USD Direction

Traders are closely monitoring upcoming data releases and central bank speeches for further insights into the direction of the EUR/USD pair. Specifically, attention will be focused on the German IFO Business Climate index, which could provide clues about the health of the Eurozone's largest economy. Additionally, speeches from Fed Chair Powell and other officials will be scrutinized for any hints regarding future monetary policy decisions.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

On March 22, the EUR/USD pair registered a decrease, falling by 0.26% to a rate of 1.08318. This movement indicates a bearish sentiment in the market, as the pair trades below the pivotal 1.0869 mark. Resistance levels are observed at 1.0898, 1.0936, and 1.0964, suggesting potential ceilings the pair might face in its upward trajectory. Conversely, support levels are positioned at 1.0799, 1.0764, and 1.0733, marking critical zones where the price could find a floor in the event of further declines.

The Relative Strength Index (RSI) stands at 38, pointing towards a bearish momentum, while the 50-Day Exponential Moving Average (EMA) at 1.0895 currently lies just above the day's closing price, underscoring the downward pressure. A bearish engulfing candle formation on the 4-hour timeframe near the 1.0830 level reinforces the expectation of continued downtrend for the EUR/USD pair.

Considering the technical landscape, the market outlook for the EUR/USD is bearish, prompting a recommended trading strategy with a sell limit order at 1.0869. This strategy targets a take profit at 1.0799 and sets a stop loss at 1.0898 to safeguard against potential upward movements.

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EUR/USD

Daily Trade Ideas

EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 22, 2024
Eurusd

Daily Price Outlook

- EUR/USD slips to 1.08318, facing resistance up to 1.0964; pivotal point at 1.0869 suggests bearish market sentiment.

- RSI at 38 and bearish candle formation indicate potential for continued downward movement.

- Advised trading strategy includes a sell limit at 1.0869, targeting take profit at 1.0799 with a stop loss at 1.0898.

On March 22, the EUR/USD pair registered a decrease, falling by 0.26% to a rate of 1.08318. This movement indicates a bearish sentiment in the market, as the pair trades below the pivotal 1.0869 mark. Resistance levels are observed at 1.0898, 1.0936, and 1.0964, suggesting potential ceilings the pair might face in its upward trajectory. Conversely, support levels are positioned at 1.0799, 1.0764, and 1.0733, marking critical zones where the price could find a floor in the event of further declines.

The Relative Strength Index (RSI) stands at 38, pointing towards a bearish momentum, while the 50-Day Exponential Moving Average (EMA) at 1.0895 currently lies just above the day's closing price, underscoring the downward pressure. A bearish engulfing candle formation on the 4-hour timeframe near the 1.0830 level reinforces the expectation of continued downtrend for the EUR/USD pair.

Considering the technical landscape, the market outlook for the EUR/USD is bearish, prompting a recommended trading strategy with a sell limit order at 1.0869. This strategy targets a take profit at 1.0799 and sets a stop loss at 1.0898 to safeguard against potential upward movements.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Limit 1.08678

Take Profit – 1.08001

Stop Loss – 1.09065

Risk to Reward – 1: 1.75

Profit & Loss Per Standard Lot = +$677/ -$387

Profit & Loss Per Mini Lot = +$67/ -$38

EUR/USD

Technical Analysis

EUR/USD Price Analysis – March 20, 2024

By LonghornFX Technical Analysis
Mar 20, 2024
Eurusd

Daily Price Outlook

The EUR/USD currency pair has been experiencing a downward trend and is currently trading around 1.0865, near multi-week lows. This trend can be attributed to the bullish US dollar, which has been gaining strength in the wake of expectations that the Fed will maintain its benchmark interest rate steady at its March meeting. However, the USD Index (DXY) is consolidating its gains near three-week highs, indicating a general preference for the USD among traders.

Despite positive sentiment in the Eurozone, particularly reflected in the improved ZEW Economic Sentiment, the euro struggles to gain momentum against a resilient dollar. Traders are being careful as they wait for the Federal Open Market Committee (FOMC) meeting this Wednesday. Most expect the committee to keep interest rates steady. Analysts believe Jerome Powell, the Fed Chair, will stress the need for clear signs of inflation before thinking about lowering rates. This belief has reduced speculation about rate cuts, making the USD more attractive.

Strong US Economic Data Reinforces Expectations of Fed's Higher Interest Rates

On the US front, the recent release of robust US consumer and producer inflation figures has reinforced speculations that the Federal Reserve (Fed) will adhere to its higher-for-longer interest rates narrative. These figures highlight a strengthening US economy and heighten expectations that the Fed will maintain its current interest rate levels, thereby supporting the US dollar.

Investors see the Fed's plan for higher interest rates as a sign that they believe in the strength of the US economy, even with global uncertainties. This makes the US dollar more appealing compared to the euro. As a result, the euro loses value against the dollar.

Eurozone Economic Sentiment Improves, but EUR/USD Momentum Remains Sluggish

Despite the Eurozone ZEW Economic Sentiment improving to 33.5 in March from the previous reading of 25.0, the EUR/USD currency pair failed to gain momentum. Similarly, economic expectations for Germany also improved, rising to 31.7 versus 19.9 prior. These positive indicators suggested a more optimistic outlook for the Eurozone and Germany as the improvements in Eurozone ZEW Economic Sentiment and Germany's economic expectations suggest a positive outlook for the Eurozone and Germany, which could generally be considered positive for the EUR currency.

Traders remained cautious ahead of the FOMC interest rate decision, opting to stay on the sidelines rather than actively trading the euro. Meanwhile, the Eurozone's economic sentiment reports provided a brief boost to sentiment but were overshadowed by the anticipation surrounding the FOMC meeting and its potential impact on the US dollar.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

In today’s technical outlook, the EUR/USD pair exhibited a marginal upward movement, registering a 0.05% increase to settle at 1.08705. The analysis of the 4-hour chart delineates a nuanced landscape for potential trading strategies, underscored by pivotal price levels that signal the pair's short-term trajectory.

The pivot point, situated at 1.08755, delineates the threshold between bullish and bearish territories. Resistance levels at 1.08996, 1.09297, and 1.09658 consecutively mark potential barriers where the pair's ascent might be contested. Conversely, support points at 1.08421, 1.07996, and 1.07622 represent zones where buyers could potentially reassert control, should the pair retreat.

Technical indicators further color the trading outlook; the Relative Strength Index (RSI) stands at 41, hinting at a bearish sentiment underpinning the current price action. Meanwhile, the 50-day Exponential Moving Average (EMA) at 1.08878 slightly overshadows the current price, suggesting a delicate balance between buyers and sellers, yet leaning towards a bearish bias.

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EUR/USD

Daily Trade Ideas

EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 20, 2024
Eurusd

Daily Price Outlook

- A sell strategy below the pivot point of 1.08765, targeting 1.08285 for take profit, seems prudent with a stop loss set at 1.09095 to mitigate potential losses.

- The proximity of the price to the 50 EMA and the RSI's position underscores the potential for downward movement.

- The delineation of resistance and support levels offers traders clear markers for setting entry and exit points, aligning with a cautious but opportunistic approach to the EUR/USD pair.

In today’s technical outlook, the EUR/USD pair exhibited a marginal upward movement, registering a 0.05% increase to settle at 1.08705. The analysis of the 4-hour chart delineates a nuanced landscape for potential trading strategies, underscored by pivotal price levels that signal the pair's short-term trajectory.

The pivot point, situated at 1.08755, delineates the threshold between bullish and bearish territories. Resistance levels at 1.08996, 1.09297, and 1.09658 consecutively mark potential barriers where the pair's ascent might be contested. Conversely, support points at 1.08421, 1.07996, and 1.07622 represent zones where buyers could potentially reassert control, should the pair retreat.

Technical indicators further color the trading outlook; the Relative Strength Index (RSI) stands at 41, hinting at a bearish sentiment underpinning the current price action. Meanwhile, the 50-day Exponential Moving Average (EMA) at 1.08878 slightly overshadows the current price, suggesting a delicate balance between buyers and sellers, yet leaning towards a bearish bias.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.08765

Take Profit – 1.08285

Stop Loss – 1.09095

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$480/ -$330

Profit & Loss Per Mini Lot = +$48/ -$33

EUR/USD

Technical Analysis

EUR/USD Price Analysis – March 18, 2024

By LonghornFX Technical Analysis
Mar 18, 2024
Eurusd

Daily Price Outlook

Despite the renewed strength of the US dollar, the EUR/USD currency pair managed to halt its downward trend and turned bullish around the 1.0895 level. The upward trend can be attributed to positive incoming data, such as strong economic indicators from the Eurozone. Additionally, the indication of a potential rate cut by the ECB due to concerns over inflation could exert downward pressure on the EUR currency as investors anticipate looser monetary policy, potentially leading to decreased demand for the euro.

Impact of ECB Policy and Economic Indicators on EUR/USD Pair

On the EUR front, the European Central Bank (ECB) maintained its record-high borrowing costs in March. However, policymakers hinted at a potential rate cut in the future. ECB policymaker Pablo Hernandez de Cos mentioned that the bank has made progress in reducing inflation and is starting to discuss monetary easing. He suggested that interest rate cuts could begin in June following a decline in Eurozone inflation. This indicates that the ECB is closely monitoring economic conditions and is prepared to take action to support the economy if needed.

Therefore, the ECB's indication of potential rate cuts and monetary easing could exert downward pressure on the EUR currency as lower interest rates typically make a currency less attractive to investors, leading to a potential decrease in its value. This sentiment suggests a possible negative impact on the EUR currency in the near future.

Moving ahead, the upcoming release of Eurozone economic indicators and the ZEW Survey from Germany and the Eurozone, followed by the FOMC interest rate decision, could create volatility in the EUR/USD pair. Positive data may support the EUR, but the FOMC decision could also impact market sentiment, leading to potential trading opportunities.

Impact of FOMC Interest Rate Decision on EUR/USD Pair

On the US front, investors are eagerly awaiting the Federal Open Market Committee's (FOMC) decision on interest rates this Wednesday. It's widely anticipated that the FOMC will maintain the current rate, which is already at a 22-year high. This decision reflects the Fed's cautious approach, as they want to ensure inflation settles around the 2% target before considering any rate cuts. This steady stance might strengthen the US Dollar and create challenges for the EUR/USD pair, potentially impacting currency markets.

On the US data front, the University of Michigan's Consumer Sentiment Index dropped to 76.5 in March, slightly lower than expected. This indicates that consumers are feeling less optimistic about the economy. However, their expectations for inflation over the next year and five years remained unchanged. On a positive note, US Industrial Production rebounded in February, increasing by 0.1% compared to a decline in January. This suggests that manufacturing and other industrial activities are starting to recover.

Therefore, the cautious approach of the Federal Reserve and the mixed US economic data could lead to a stronger US Dollar, putting downward pressure on the EUR/USD pair.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

On March 18, the EUR/USD pair remained stable with a negligible decline, marking its position at 1.08879. This stability comes amidst a trading environment that meticulously watches for shifts in global economic indicators and central bank policies, potentially influencing the currency pair's trajectory.

The technical setup for EUR/USD indicates a closely contested battle between bulls and bears around the pivot point of 1.0898. Resistance levels are established at 1.0917, 1.0945, and 1.0964, delineating the hurdles that the euro needs to overcome to sustain an upward momentum against the dollar. Support levels, meanwhile, are situated at 1.0875, with further cushions at 1.0843 and 1.0820, acting as safety nets against a potential downturn.

The technical indicators provide a more nuanced view of the pair's future direction. The Relative Strength Index (RSI) at 39 suggests that the pair is nearing the oversold territory, possibly indicating an upcoming shift in momentum. The 50-Day Exponential Moving Average (EMA) at 1.0916 closely aligns with the first resistance level, underscoring a critical threshold for the currency pair. A notable breakout at the 1.08970 level, as indicated by the upward trendline, points towards the initiation of a selling trend.

In summary, the EUR/USD's current stance is delicately poised at a crucial juncture. While the pair shows potential for a selling trend following the breakout, traders should consider a strategic approach: selling below 1.08971, targeting a take profit at 1.08544, and setting a stop loss at 1.09177. This setup reflects a cautious optimism, tempered with the recognition of underlying volatility and the need for precise, risk-managed entries and exits.

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EUR/USD

Daily Trade Ideas

EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 18, 2024
Eurusd

Daily Price Outlook

- EUR/USD stability masks underlying market volatility, with technicals suggesting a potential selling trend.

- The RSI and EMA indicators hint at critical resistance and potential shifts in momentum.

- A careful trading strategy involves selling below 1.08971, with clear targets and stop-loss parameters to navigate the pair's next moves.

On March 18, the EUR/USD pair remained stable with a negligible decline, marking its position at 1.08879. This stability comes amidst a trading environment that meticulously watches for shifts in global economic indicators and central bank policies, potentially influencing the currency pair's trajectory.

The technical setup for EUR/USD indicates a closely contested battle between bulls and bears around the pivot point of 1.0898. Resistance levels are established at 1.0917, 1.0945, and 1.0964, delineating the hurdles that the euro needs to overcome to sustain an upward momentum against the dollar. Support levels, meanwhile, are situated at 1.0875, with further cushions at 1.0843 and 1.0820, acting as safety nets against a potential downturn.

The technical indicators provide a more nuanced view of the pair's future direction. The Relative Strength Index (RSI) at 39 suggests that the pair is nearing the oversold territory, possibly indicating an upcoming shift in momentum. The 50-Day Exponential Moving Average (EMA) at 1.0916 closely aligns with the first resistance level, underscoring a critical threshold for the currency pair. A notable breakout at the 1.08970 level, as indicated by the upward trendline, points towards the initiation of a selling trend.

In summary, the EUR/USD's current stance is delicately poised at a crucial juncture. While the pair shows potential for a selling trend following the breakout, traders should consider a strategic approach: selling below 1.08971, targeting a take profit at 1.08544, and setting a stop loss at 1.09177. This setup reflects a cautious optimism, tempered with the recognition of underlying volatility and the need for precise, risk-managed entries and exits.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.08971

Take Profit – 1.08544

Stop Loss – 1.09177

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$427/ -$206

Profit & Loss Per Mini Lot = +$42/ -$20

EUR/USD

Daily Trade Ideas

EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 15, 2024
Eurusd

Daily Price Outlook

- EUR/USD's slight decline to 1.08734 reflects a cautious market atmosphere.

- Resistance and support levels map out potential pathways for the pair's next movements.

- RSI and EMA indicators hint at a pivotal moment, suggesting room for strategic entries.

On March 15, the EUR/USD pair witnessed a subtle decrement, registering a 0.09% fall to conclude at 1.08734. This minor shift underscores the currency pair's current predicament as it grapples with sustaining momentum amidst the ebbs and flows of market sentiment. Nudging slightly below the pivotal point of 1.0902, the EUR/USD now teeters at a critical juncture, poised for either resurgence or further decline based on forthcoming market cues.

The set resistance levels at 1.0930, escalating to 1.0966 and further stretching to 1.1010, mark significant hurdles that must be overcome to signal a shift towards a bullish outlook. Conversely, the terrain below is scaffolded by immediate support at 1.0842, extending down to 1.0800 and 1.0762, which stand ready to arrest any additional dips, safeguarding the pair from deeper retractions.

The trading environment is punctuated by the Relative Strength Index (RSI) dipping to 30, a marker possibly indicating the pair's drift into oversold territory. This, coupled with the pair's brush against the 50-day Exponential Moving Average (EMA) at 1.0904, paints a nuanced picture of the tug-of-war between buyers and sellers. The confluence of these technical indicators, alongside the pair's price action relative to the pivot point, encapsulates the delicate balance steering EUR/USD's short-term trajectory.

In navigating this landscape, a prudent strategy emerges: initiating sells below 1.08993 with an objective to lock in gains at 1.08420, while placing a stop loss at 1.09333 to curtail potential losses.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Sell Below 1.08993

Take Profit – 1.08420

Stop Loss – 1.09333

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$573/ -$340

Profit & Loss Per Mini Lot = +$57/ -$34

EUR/USD

Technical Analysis

EUR/USD Price Analysis – March 15, 2024

By LonghornFX Technical Analysis
Mar 15, 2024
Eurusd

Daily Price Outlook

The EUR/USD pair has experienced a notable retreat into the 1.0800 range, a departure from its recent stance in the 1.0900, largely influenced by recent U.S. economic indicators. These indicators have cast doubts on the Federal Reserve's (Fed) pace of interest rate reductions.

U.S. Economic Data Signals a Warmer Economy

The U.S. Producer Price Index (PPI) for February reported an unexpected 1.6% year-over-year increase, surpassing the anticipated 1.1% and January's revised 1.0% rise. This, coupled with lower-than-expected Initial Jobless Claims and a modest 0.6% increase in Retail Sales, underscores the persistent economic heat in the U.S., suggesting prolonged higher interest rates—a scenario that dampens EUR/USD prospects while buoying the U.S. Dollar due to its appeal for foreign capital inflow.

Diverse Views from ECB Policymakers on Interest Rate Cuts

A flurry of public appearances by European Central Bank (ECB) officials has revealed divergent opinions on the timing of interest rate reductions. While ECB President Christine Lagarde pinpointed June for a reevaluation of rates, comments from the Bank of France's Francois Villeroy de Galhau introduced the possibility of an April cut, indicating a split within the ECB between those favoring earlier versus summer rate cuts.

Subsequent remarks from ECB officials, including Robert Holzmann, Yannis Stournaras, Klaas Knot, and Vice-President Luis de Guindos, further highlight the debate over the ECB's rate cut timeline. Stournaras's support for a spring rate reduction and Knot's June prediction, alongside de Guindos's anticipation of decisive information by June, reflect the ongoing deliberation on ECB's monetary policy path.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Technical Analysis

On March 15, the EUR/USD pair witnessed a subtle decrement, registering a 0.09% fall to conclude at 1.08734. This minor shift underscores the currency pair's current predicament as it grapples with sustaining momentum amidst the ebbs and flows of market sentiment. Nudging slightly below the pivotal point of 1.0902, the EUR/USD now teeters at a critical juncture, poised for either resurgence or further decline based on forthcoming market cues.

The set resistance levels at 1.0930, escalating to 1.0966 and further stretching to 1.1010, mark significant hurdles that must be overcome to signal a shift towards a bullish outlook. Conversely, the terrain below is scaffolded by immediate support at 1.0842, extending down to 1.0800 and 1.0762, which stand ready to arrest any additional dips, safeguarding the pair from deeper retractions.

The trading environment is punctuated by the Relative Strength Index (RSI) dipping to 30, a marker possibly indicating the pair's drift into oversold territory. This, coupled with the pair's brush against the 50-day Exponential Moving Average (EMA) at 1.0904, paints a nuanced picture of the tug-of-war between buyers and sellers. The confluence of these technical indicators, alongside the pair's price action relative to the pivot point, encapsulates the delicate balance steering EUR/USD's short-term trajectory.

In navigating this landscape, a prudent strategy emerges: initiating sells below 1.08993 with an objective to lock in gains at 1.08420, while placing a stop loss at 1.09333 to curtail potential losses.

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EUR/USD

Daily Trade Ideas

EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 13, 2024
Eurusd

Daily Price Outlook

- EUR/USD sees minimal movement, indicating cautious trading behavior.

- Resistance and support levels delineate the potential range for upcoming sessions.

- Technical indicators suggest a slight buying advantage with room for upward mobility.

In the current trading environment, the EUR/USD pair has shown a slight decline of 0.01%, positioning itself at 1.0921. This minor adjustment mirrors the broader market's cautious anticipation of economic indicators and geopolitical events, influencing investor sentiment towards the Euro against the US Dollar.

Technical analysis reveals that the pair is trading just above a critical pivot point at 1.0914, hinting at underlying support that might pave the way for potential upward movement. Immediate resistance levels are identified at 1.0979, 1.1043, and 1.1106, marking potential hurdles the pair might face in its ascent. Conversely, support is observed at lower thresholds of 1.0868, 1.0817, and 1.0762, serving as vital markers that could trigger a bearish trend if breached.

The Relative Strength Index (RSI) stands at 51, suggesting a relatively balanced market with a slight tilt towards buying pressure. The 50-day Exponential Moving Average (EMA) at 1.0899 further supports the notion of a bullish bias, provided the pair maintains its stance above this moving average.

Conclusion: The EUR/USD pair exhibits potential for a bullish trend, conditional on sustaining above the pivot point of 1.0914. An entry price for buying is recommended above 1.09146, targeting a take profit at 1.09772, with a stop loss placed at 1.08731 to mitigate risks associated with unforeseen market movements.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.09146

Take Profit – 1.09772

Stop Loss – 1.08731

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$626/ -$415

Profit & Loss Per Mini Lot = +$62/ -$41

EUR/USD