2020-09-15 • Updated
EUR/USD is edging higher amid the broad sell-off of the greenback and the overall risk-on sentiment. Let’s discuss what can stop its rally.
The euro rally has started with the ECB’s statement last week, when the central bank addressed a stronger euro. Today China released upbeat economic indicators: industrial production, retail sales, fixed asset investment, and unemployment rate. All the data were better than analysts expected. Moreover, coronavirus hopes added optimism to the market as well. As a result, the market sentiment improved, which underpinned risker assets and weighed on the safe-haven US dollar.
New virus cases are rising in some parts of Europe, but investors shrug off that news for now. Besides, there is some uncertainty over Brexit as the UK Prime Minister Boris Johnson passed the Internal Market Bill, which violates the previous EU-UK agreement. The worsened relationship between both sides may lead to hard Brexit, which would negatively impact the Eurozone as well as the United Kingdom.
EUR/USD is trading above 50-, 100- and 200-day moving averages, signaling the bullish momentum. The RSI indicator is at quite high levels, but still below 70, which indicates that the euro is not yet overbought. There is a significant resistance of 1.1940, which the pair has failed to break several times. If it manages to cross it, the way towards the key psychological mark of 1.2000 will be open. Support levels are at the lows of September 8 and August 28 at 1.1770 and 1.1700, respectively.
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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