By RoboForex Analytical Department
The major currency pair continues falling. On Monday 28 March, EUR/USD is trading at 1.0951.
The currency market is still interested in the “greenback” as a “safe haven” asset – investors need to hedge risks amid both global geopolitical tensions and the US Fed’s policy.
Earlier, Fed Chairman Jerome Powell said that the benchmark interest rate might leap up 50 basis points if the regulator couldn’t handle inflation.
There will be six more Fed meetings this year and the rate might be raised after each of them.
In the H4 chart, having formed a new consolidation range around 1.1010 and broken it to the downside, EUR/USD is expected to test 1.0970 and then complete the correction at 1.0901. Later, the market may form one more ascending wave the target at 1.1133. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is falling below 0 and may soon update the lows.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
As we can see in the H1 chart, after breaking 1.0970 to the downside, EUR/USD is expected to test it from below and may later form a new ascending structure with the short-term target at 1.0919. After that, the instrument may grow to re-test 1.0970 from below and then resume trading downwards with the target at 1.0900. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after breaking 20 to the upside, its signal line may continue moving to reach 50. Later, the line may rebound from 50 and start a new decline towards 20.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- The Dollar Index strengthened on Powell’s comments. The Bank of Mexico cut the rate to 10.25% Nov 15, 2024
- EURUSD Faces Decline as Fed Signals Firm Stance Nov 15, 2024
- Gold Falls for the Fifth Consecutive Trading Session Nov 14, 2024
- Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations Nov 13, 2024
- USD/JPY at a Three-Month Peak: No One Opposes the US Dollar Nov 13, 2024
- Can Chinese Tech earnings offer relief for Chinese stock indexes? Nov 13, 2024
- Bitcoin hits an all-time high above $88,000. Oil remains under pressure Nov 12, 2024
- Brent Crude Stumbles as Market Sentiments Turn Cautious Nov 12, 2024
- Bitcoin hits new record high just shy of $82,000! Nov 11, 2024
- The Dow Jones broke the 44 000 mark, and the S&P 500 topped 6 000 for the first time. The deflationary scenario continues in China Nov 11, 2024
