Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...
EUR: another winner in the field
2020-03-03 • Updated
Key indicators
Performance in 2020: -0.6%
Last day range: 1.1037 – 1.1184
52-week range: 1.0780-1.1515
Euro's winning spree
The euro has been in decline against the US dollar since the very beginning of 2018. That means, for more than two years. Now, this long-term trend is put to a test. Who would know that it would be Coronavirus that led to such an outcome?
Checkpoints
So the euro has retaken all its losses to the USD that we have seen since the beginning of February. In fact, it is now one step away to recover all it gave to the US dollar during this year. If it comes to test the resistance of 1.1250, which is the December high and a 6-months high, that will be a sound tactical victory.
Strategically, reaching up to 1.1250 would mean defying the long-term downward trend (market as a blue straight line). That resistance level is less than in 100 pips from the current 1.1145, and EUR/USD made stronger leaps in the recent days. So even if the target may not be an easy one, it is completely realistic for a day’s trade.
Geopolitically, the question about the EUR/USD and its further advancements gets increasingly intriguing as the trade between the US and Europe doesn’t seem to be moving along the most pacifying note on behalf of each side, and Brexit is another catalyst to that “friendly” trade process. Let’s watch what the ECB president Christine Lagarde says next week, and what the US Fed brings to the table the week after.
Technical levels
Resistance 1.1250
Support 1.1000
Similar
Bearish Scenario: Sell below 39600... Anticipated Bullish Scenario: Intraday buys above 39750... Bullish Scenario after Retracement: Intraday buys above 39150
Bearish scenario: Shorts below 18100 with TP1: 17900... Anticipated bullish scenario: Intraday Longs above 18130 with TP...
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...