EUR/USD: Market Update and Analysis – 14 March 2023
14 Mar 2023
Post-US CPI, the EUR/USD resumes its upward trend near 1.0750.
Fundamental Overview
EUR/USD now reverses initial losses and revisits 1.0750.
US CPI matched previous expectations in February.
The focus remains on the potential moves by the Fed in March.
EUR/USD now reverses the initial pessimism and retakes the 1.0750 regions, advancing modestly on Tuesday.
EUR/USD: Gains appear to have peaked around 1.0750.
As the US CPI inflation numbers revealed that core CPI gained 5.5% and headline CPI increased 6.0% in the year to February, both readings matched early expectations, and the EUR/USD reverses some of its previous losses.
The dollar, however, surrenders some of its earlier gains and is currently struggling to recoup upside momentum in reaction to growing rumors that the Fed would suspend its rate hike cycle as early as at the March meeting, always in response to growing concerns about the US banking sector.
Things to watch out for roughly EUR
Despite some ambiguous price movement in the dollar after US CPI, EUR/USD is now under some downside pressure and remains the upward objective at the 1.0750 area.
In the interim, price movement surrounding the euro should continue to closely track changes in the value of the dollar as well as any potential further actions by the ECB after its meeting in March, at which time the bank has already budgeted for a further rate hike of 50 basis points.
This week’s significant events in the eurozone include Tuesday’s ECOFIN Meeting; Wednesday’s EMU Industrial Production; Thursday’s ECB Lagarde; and Friday’s EMU Final Inflation Rate (Friday).
Important problems on hold include the ECB’s ongoing cycle of rate hikes amid declining expectations for a regional recession and persistently high inflation. Effect of the Russia-Ukraine conflict on regional inflation and growth prospects. risks of persistent inflation.
EUR/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
The current price of the pair is 1.0718, down 0.07%, and it will meet competition at 1.0524 (monthly low March 8), followed by 1.0481 (2023 low January 6) and ultimately 1.0324. (200-day SMA). On the upside, a break of 1.0737 (the March 13 monthly high) would aim for 1.0804 (the February 14 weekly high), and eventually 1.1032 (2023 high of February 2).
EURUSD currently started trading in the up channel.
EURUSD is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
EURUSD resistance is at 1.07439 & its immediate support level is 1.06894
HOW TO TRADE EUR/USD
EUR/USD is trading in an up channel; currently, it has broken its previous day’s high, and it is trading at above important support zone, if it holds above the level then, we can see further upside.