News
7x24
Quotes
Economics Calendar
Video
Data
- Names
- Latest
- Prev.
Columns
Trending Topics
Russia-Ukraine Conflict
The war between Russia and Ukraine continues, and it is difficult for the two sides to reach an agreement in negotiations. Western countries have imposed several rounds of sanctions on Russia. The outlook is unpredictable.
The Fed
The Federal Reserve (Fed), or the central bank of the United States, is responsible for regulating the U.S. monetary policy and interest rates. As a provider of liquidity for world trade, the Fed is also known as the world's central bank. Its every move affects the global economy and financial markets.
China-U.S. Relations
Focus on Pelosi's Taiwan Visit ! How will China-U.S. relations develop in the future, win-win cooperation or confrontation?
FastBull Spotlights
Pick the most insightful news around the world for you!
Video
Latest Update
Full Course: How to Optimize Your Strategy With Ai that Boost Your Trading Performance?
How did I optimize the supertrend strategy from TradingView and made 20x gain using Machine Learning Decision Tree?
Full Course: Beginner’s Guide to Develop a Robust Deep-Learning Ai for Stock or Crypto Trading
This is the Guide on how to Develop a Robust Deep-Learning Ai for cryptocurrency investing for beginners, explaining the use of recurrent neural networks (RNN) for price changes and a linear layer for technical indicators, and presents a code snippet for building the AI model using PyTorch.
How to customize your own indicators and get over 2x of your asset returns?
An example of a customized indicator strategy that significantly increased BTC returns during a long bullish trend is presented, want to know the backtest results and codes of the strategy?
PEPE Has Surged Over 7000% Max In 1-Month! Buy It or Sell It?
PEPEcoin gained over 7000% in 1-month and surged to over 1.6 billion dollar market cap. Is there still a chance to buy from the technical indicators?
Recent Searches
Trending Searches
View All
No data
Invite
EURUSD: Beware of Chasing Highs As Spillover Effects and Bull Profit-Taking Lead to Price Slump
Inflation and RecessionCentral Bank Policy TrendsEconomic TrendsForex MarketBanking Crisis in Europe and America
Summary:
The EURUSD was under bearish pressure again, falling below the 1.0750 level on Friday. Despite upbeat PMI data from Germany and the Eurozone, risk-averse flows dominated the market amid sharp declines in European banking stocks.
CLOSED
1.08300
ENTRY
1.06200
TGT
1.09500
SL
1.06891 -0.00025 -0.02%
1200
Points
Loss
1.06200
TGT
1.09503
CLOSING
1.08300
ENTRY
1.09500
SL
Fundamentals
Eurozone services PMI preliminary value in March recorded 55.6, a 10-month high; Eurozone composite PMI preliminary value in March recorded 54.1, a 10-month high.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the Eurozone PMI data for March, saying "The eurozone economy is showing fresh signs of life as we enter spring, with business activity growing at its fastest rate for ten months in March. The survey is consistent with GDP growth of 0.3% in the first quarter, accelerating to an equivalent rate of 0.5% in March alone."
"Growth has been buoyed since lows late last year as recession fears and concerns about energy markets recede, inflationary pressures ease, and unprecedented supply chain delays during the outbreak are replaced by record improvements in supplier delivery times."
"Business confidence is also so far showing encouraging resilience in the face of further interest rate hikes and the uncertainty caused by recent banking sector stress."
In terms of the market, Eurozone PMI data for March paint a picture of a resilient economy, providing further scope for the European Central Bank to raise interest rates in the coming months. The data imply that the Eurozone economy grew almost certainly in the first quarter and indicate a very strong employment situation, but inflationary pressures persist.
It is clear that economic activity in the Eurozone will not be directly affected by the banking crisis in the U.S. and Switzerland, as banks in the region have not been harmed. However, economic activity could still be hit by the decline in confidence associated with the crisis.
We believe the ECB should continue to raise interest rates and should accelerate the pace of balance sheet reduction because rapid wage growth is putting upward pressure on the already high inflation rate.
The pause in rate hikes previously perceived by the market is not appropriate. Current wage growth is already too high to keep pace with the ECB's 2% inflation target, and while the wage and price spiral has not yet begun, the second round of income growth will keep domestic price pressures high. Companies are hoarding labor out of fear that recruitment costs will be too high in the wake of the current recession, and labor supply is already shrinking in most of the G20 countries; thus, structural tensions will continue.
Technical Analysis
EURUSD rallied sharply this week to 1.0930 before starting a new round of declines. It is currently trading below 1.0875, entering a short-term bearish range.
In the short-term 4-hour timeframe, EURUSD has experienced an overbought adjustment, and the retracement will test the support of the 1.0760-1.0800 area above the previously sideways resistance. If it can stabilize above the above area, the euro is still expected to continue to rally toward the 1.0930 highs in the aftermath.
However, there is a clear downward trend below the 1.0850 support area and even a possible close below the 50-hour SMA. The downtrend is currently consolidating with immediate support around 1.0710.
If the bulls are able to hold the 1.0710 support level, the next major rally resistance level is around 1.0860. A break of this resistance could start another wave of gains. In the above scenario, the bulls could return above the 1.0900 level.
Instead, the pair could continue to fall below the 1.0710 level. The next key support level is around 1.0630. Any more acceleration of the decline could push the pair toward the previous bottom.
Overall, spillover effects and long profit-taking are important factors for this sharp price decline. Due to the excessive decline, a corrective rebound is likely to return to the downtrend afterward. It is recommended to go short at highs.
Trading Recommendations
Trading Direction: Short
Entry Price: 1.0830
Target Price: 1.0620
Stop Loss: 1.0950
Valid Until: 2022-04-07 23:55:00
Support: 1.0704, 1.0680, 1.0635
Resistance: 1.0788, 1.0837, 1.0895
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
Master of Economics, 8 years in the financial industry, CFA holder, joined HSBC (Hong Kong) Bank in 2013 after graduating from the University of California, USA in the Investment Research and Markets Department. With years of financial market experience and trading experience, having provided excellent investment advice to many brokerages, entity derivatives importers and clients in Greater China.
Related Analysis
DJIA: Buy the Dips while Bulls Are to Be Continued
TradingXAUUSD: Bulls Have No Choice but to Be Forced to Pull Up
TradingXAUUSD: Gold Price to Continue Wide Range Volatility Ahead of June Fed Rate Decision
PENDINGUSDCAD: Bulls Fail to Break 1.3700 Level Again, Leaving More Room for Periodic Adjustment
TradingXAUUSD: Focus on U.S. May Non-Farm Payrolls, Gold Prices Expected to Maintain Range-bound Volatility
PROFIT +3940 Points
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2023 FastBull Ltd
Home News Columns 7x24 Economics Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.