Prior to Lagarde, EUR/USD remained under pressure below 1.1000
FUNDAMENTAL OVERVIEW
The decline from a one-year high early on Monday, which began on Friday, is being consolidated by pressure on the EUR/USD below 1.0100. Despite a more positive market climate and down US Treasury bond yields at the start of the week, the US Dollar is in recovery mode. ECB eyes speak.
After a strong collapse and partial loss of its weekly gains late Friday, the EUR/USD entered a consolidation period early on Monday. The pair’s technical picture for the immediate future demonstrates that sellers are still unwilling to commit to a lengthy downward drop.
Despite the US’s poor March Retail Sales figures, the US Dollar (USD) gained ground on its competitors ahead of the weekend thanks to the Fed’s hawkish remarks.
Governor of the Federal Reserve Christopher Waller stated that more rate increases are required because recent data indicate that the Fed hasn’t made much headway towards its aim of inflation. Waller added that “monetary policy will need to remain tight for a significant period, and longer than markets anticipate.” In response, the US Dollar Index increased by more than 0.5%, demonstrating the beneficial effects of these comments on the USD’s performance relative to its competitors.
Markets are presently pricing in an 83% likelihood that the Fed will increase its policy rate by another 25 basis points (bps) at the forthcoming meeting, according to the CME Group Fed Watch Tool.
In the meantime, several ECB policymakers admitted that they intended to either increase the policy rate by 25 or 50 bps in May.
EUR/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
EUR/USD is currently trading in up channel.
EUR/USD currently trading above 20&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.
EUR/USD resistance is at 1.09975 & its immediate support level is 1.09737
HOW TO TRADE EUR/USD
The EUR/USD currency pair is trading in up channel. Price is falling and getting closer to the first level of support; if that level of support is broken, there may be further downside.
