. EUR/USD Advances on Uptick in Risk Sentiment - 21 March 2023

EUR/USD Advances on Uptick in Risk Sentiment – 21 March 2023

EUR/USD Advances on Uptick in Risk Sentiment – 21 March 2023

21 Mar 2023

With widespread USD weakness, the EUR/USD currency pair keeps climbing towards 1.0800.

FUNDAMENTAL OVERVIEW

On Tuesday, the EUR/USD maintains its upward trend and advances towards 1.0800. The US Dollar struggles to find demand due to the uptick in risk sentiment, which supports the pair’s upward movement. The US economic docket will include a segment on existing home sales.

The EUR/USD has regained momentum and soared to a weekly high above 1.0730 in the European morning after a stabilization phase at about 1.0700 in the Asian session. Investors may choose to hold off on placing bets on a consistent upswing before the US Federal Reserve (Fed) announces its monetary policy statements, despite the positive change in risk sentiment that has been observed helping the pair maintain its footing.

On Monday, European Central Bank (ECB) President Christine Lagarde testified before the European Parliament, stating that if there were no market tensions, they would have stated that additional rate hikes will be required. Inflation in the Eurozone is expected to stay too high for too long, she added once more. Although there was no discernible market response to these remarks, the Euro was nevertheless able to hold its own against its main competitors.

The Euro Stoxx 50 is up more than 1.5% in the early European session, reflecting the optimistic market sentiment. Moreover, futures for US equity indexes are up about 0.3%.

The European economic docket will include the Economic Sentiment Index for Germany and the Eurozone from the ZEW Survey. The upheaval involving Silicon Valley Bank and Credit Suisse is expected to show up in the survey as a decline in mood for March. The Euro might lose some appeal with the quick response if the downturn is more severe than anticipated.

EUR/USD TECHNICAL ANALYSIS DAILY CHART:

weekly charts

Technical Overview

The daily chart’s Relative Strength Index (RSI) indicator maintains a comfortable reading over 50, indicating that buyers are still in charge. On the upside, key resistance is aligned at the static level of 1.0750. The next possible targets for the pair are 1.0770 (static level) and 1.0800 (static level, psychological level), should they be able to convert that level into support.

EUR/USD is currently trading in an up channel.

EUR/USD is currently trading above all SMA.

RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.

EUR/USD resistance is at 1.07595 & its immediate support level is 1.07188

HOW TO TRADE EUR/USD

EUR/USD is trading in an up channel; it has broken the previous day’s high, and it is at the resistance zone. If the resistance zone is broken and it holds above there, then we might see further upside.

TRADE SUGGESTION- BUY AT 1.07595, TAKE PROFIT AT 1.07999, SL AT 1.07333