2020-12-15 • Updated
Strategists at Crédit Agricole expect the USD will continue falling, while the EUR will keep rising in the coming months. The bank named the greenback as the largest loser from the global recovery. Indeed, the US dollar has been dipping for almost half a year already. As a result, EUR/USD has broken through the key psychological level of 1.2000. It’s a natural thing that investors take out their capital from safe-havens assets such as the USD and flow them into assets with higher returns as the global economy is entering the new growth phase.
Crédit Agricole considers that the greenback is overvalued against its major peers as the USA has fiscal and trade deficit. “Global investors could thus start hedging against future depreciation of the currency and sell the USD forward”. At the same time, Crédit Agricole models demonstrate that the euro is undervalued.
According to Crédit Agricole, "recovering global growth and trade will lead to increased selling of USD by global corporates as they convert their growing exports proceeds into their home currencies”. They foresee EUR/USD to reach 1.2500.
EUR/USD is touching the 50-period moving average, which has been supporting the pair since the start of November. Therefore, the price is unlikely to break down, but if it does, the support zone of the recent lows of 1.2100-1.2110 will limit the further falling. When EUR/USD approaches the resistance of 1.2170, it may meet the fresh selloff ahead of the breakout. The next resistance will be at 1.2200.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Bearish Scenario: Sales below 78.99 with TP1: 77.93, TP2: 77.45, and upon its breakout TP3: 76.56 and TP4: 75.70 Bullish Scenario: Purchases above 78.00 (wait for a pullback to this area) with TP1: 1679.00 (uncovered POC*), TP2: 79.33, and TP3: 79.66 intraday
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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