Best Trade Ideas for April
I know we've had quite an amazing run these past few month, with over 78% accuracy in our trade ideas and sentiments, and thousands of pips in profits monthly...
EUR/USD: bearish forecasts
Information is not investment advice
What happened?
EUR/USD has started the week on the negative footing as
- the market sentiment turned to risk-off amid vaccine delays and rising cases in Eurozone,
- markets await the ECB meeting on Thursday, which is unsatisfied with too high EUR,
- the EUR has a historical tendency to drop after US inaugurations,
- and bearish technical signals.
Forecasts
Most analysts foresee that EUR/USD will inevitably dip to 1.2000 over the coming days. However, it should be just a short corrective pullback ahead the pair continues further rallying upwards.
ING: “Wrapping up, ongoing Italian political uncertainty and a steadier dollar could briefly see EUR/USD trade 1.1980”.
Nordea Markets: “More often than not (9 out of 12 times), EUR/USD drops in the aftermath of a presidential inauguration. We are less gullible buyers of risk for now, but would consider using levels around 1.1950 in EUR/USD to go long again”.
Technical outlook
- The divergence between RSI and price may warn of the market reversal. When the new high of the price is not confirmed by the new high in the RSI, it’s a bearish divergence, which is a negative signal.
- The bearish divergence will be also confirmed if we look at the MACD indicator. Elsewhere, MACD has approached the zero line. Once it crosses it, it will be e bearish signal as well.
- The key support area is 1.1950-1.2000. If the pair drops to this level, it shouldn’t fall further. The reverse to the upside will be expected.
Similar
CAD Might Weaken As Oil Market Plunges
Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system...
Bitcoin & Gold - Safe Haven Amid Bank Crisis
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
