How Will Euro Move After the ECB

How Will Euro Move After the ECB

2023-03-17 • Updated

The European Central Bank (ECB) raised its interest rates by 0.5% to 3%, as planned, to combat inflation, despite some investors' calls to delay the hike due to banking sector turmoil. The ECB is expecting inflation to exceed its 2% target through 2025. Due to the fundamental data, the Euro gained positively against the US Dollar, Pound, and Swiss Francs. The technical outlook, however, would determine our reaction to this situation.

EURUSD

EURUSDDaily-1703.png

EURUSD has made an initial reaction to the drop-base-rally demand zone. At this juncture, we also see how the demand zone aligns perfectly with the 100-Day Moving Average, the trendline support, and the 88% Fibonacci retracement area. The sentiment is clearly, largely bullish.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.08700

Invalidation: 1.04850

EURGBP 

EURGBPDaily-1703g.png

Similar to what we had on EURUSD, we see here how EURGBP also reacted initially away from the demand zone. However, in the case of the EURGBP, we see the MAs arrayed in a bullish pattern. Based on the confluence of the trendline support, the 200-Day moving average, the MA array, the 88% of the Fibonacci retracement tool, and finally, the demand zone, I will keep my sentiments bullish on EURGBP.

Analysts’ Expectations: 

Direction: Bullish

Target: 0.90560

Invalidation: 0.86930

EURJPY 

EURJPYDaily-1703.png

EURJPY recently broke out of a wedge pattern, after which the price retreated into the demand zone responsible for that break of structure. It is important to note that because the demand zone aligns perfectly with the 76% Fibonacci level and the deop-base-rally demand zone, it is only logical to conclude in favor of a bullish outcome.

Analysts’ Expectations: 

Direction: Bullish

Target: 147.30

Invalidation: 137.30

EURNZD 

EURNZDDaily-1703.png

EURNZD is my favorite setup as far as this piece goes for very obvious reasons. The daily timeframe shows the price currently trading within a channel, with the current price action heading toward the trendline support of the channel. The exciting aspect of this setup is that the trendline support has other confluences from the drop-base-rally demand zone, the MA array, the 100-Day MA, and secondary trendline support.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.72940

Invalidation: 1.68090

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more of such trade ideas and prompt market updates on the telegram channel.

Similar

Top Three Trade Ideas for December 2023
Top Three Trade Ideas for December 2023

Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops

Can USD Recover?
Can USD Recover?

The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...

CPI Release Will Boost The CAD
CPI Release Will Boost The CAD

Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...

Latest news

Bitcoin 2024: The Story Is Cyclical
Bitcoin 2024: The Story Is Cyclical

In the dynamic world of financial trading, understanding the nuanced relationship between the Federal Reserve's key interest rates and Bitcoin can be a game-changer…

Will NFP Be Positive for the US Dollar?
Will NFP Be Positive for the US Dollar?

As the US Non-Farm Payrolls (NFP) take center stage, this month's data gains special attention, particularly after the unemployment rate took a concerning turn in the previous month. The US ADP Employment Change reveals a significant decline, with the economy adding 298K new jobs...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera