The European Central Bank (ECB) has raised interest rates by 25 basis points, marking its tenth consecutive rate hike since July 2022 and bringing the total increase to 450 basis points. The ECB is primarily concerned about high inflation levels, both current and projected, with concerns extending into the future.
EUR/USD: a good signal to buy the EUR
2019-11-11 • Updated
BUY 1.171 SL 1.1655 TP1 1.181 TP2 1.191 TP3 1.2035
BUY 1.154 SL 1.1485 TP1 1.164 TP2 1.171 TP3 1.181
On the daily chart of EUR/USD, bears couldn’t pull the pair below the support at 1.1445 (50% of the upward long-term wave). As a result, bulls took the initiative. They are going to break the diagonal resistance and pull the pair to targets of “Head and shoulders” and “Shark” patterns.
On H1, after the pair reached the 113% target of the “Shark” pattern, risks of the pullback to 23.6%, 38.2% and 50% of the CD wave increased. The correction should be used to buy.
The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.