What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Huge Week for the USD
Information is not investment advice
This week, there is a thrilling array of fundamental releases for the US Dollar. This array features several high-impact news releases like the Consumer Price Index (CPI), Retail Sales, and the Producer Price Index (PPI). The overall impact of this line-up remains to be seen, but we can formulate predictions based on the current price action on the DXY and the major pairs. Let's take a look at them right away!
US Dollar - Daily Timeframe
The Daily timeframe chart of the US Dollar index shows the price currently reacting from the 50-Day moving average and the 61.8 Fibonacci retracement. Considering the most recent break of the structure being bullish, I am expecting to see an initial bearish reaction from the Dollar. After that bearish reaction, we can hope for a bullish continuation from the drop-base-rally demand zone I have marked towards the bottom of the chart attached above.
Analysts’ Expectations:
Direction: Bullish
Target: 104.739
Invalidation: 100.774
GBPUSD
GBPUSD has recently broken below the trendline support of the rising channel. If the price rises to meet the trendline, I expect that to act as a bearish confirmation. The highlighted supply zone is also a crucial confluence to consider in favor of a bearish move.
Analysts’ Expectations:
Direction: Bearish
Target: 1.19412
Invalidation: 1.24058
EURUSD
EURUSD is currently reacting from a confluence of the 50-Day moving average. However, the price action to the left suggests that the price needs to fill up the imbalance created by the break of the previous high.
Analysts’ Expectations:
Direction: Bearish
Target: 1.10386
Invalidation: 1.06004
XAUUSD - 4 Hour Timeframe
Gold has recently broken below the trendline support of the rising wedge, followed by a retracement and another structure break. Based on this, the order block responsible for the most recent structure break would act as an area of resistance. The 50-period moving average provides further confirmation in favor of a bearish reaction.
Analysts’ Expectations:
Direction: Bearish
Target: $1,839.04
Invalidation: $1,890.70
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.
Legal disclaimer: The content of this material is a marketing communication, and not independent investment advice or research. The material is provided as general market information and/or market commentary. Nothing in this material is or should be considered to be legal, financial, investment or other advice on which reliance should be placed. No opinion included in the material constitutes a recommendation by Tradestone Ltd or the author that any particular investment security, transaction or investment strategy is suitable for any specific person. All information is indicative and subject to change without notice and may be out of date at any given time. Neither Tradestone Ltd nor the author of this material shall be responsible for any loss you may incur, either directly or indirectly, arising from any investment based on any information contained herein. You should always seek independent advice suitable to your needs.
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