EUR/USD - forecast & how to trade
Updated
Technical view
Todays market reaction is connected with the fundamental view on the second half of this analysis. The price is near first stronger support area. We have to wait and see if support will be build there. If yes we can expect the forming of an head and shoulder formation and open long positions. If this area should break down fast within next two trading days we can expect further down movement to at least first short term trend line support which is near 1.13 €. 200D moving average looks like a soon down crossing with 100D moving average which would implement further market down movement.
Fundamental view
Company sentiment in the eurozone had deteriorated more strongly than expected in March. The purchasing managers' index published by the market research institute Markit has fallen sharply in the industry. At 47.6 points, it reached the lowest level since the sovereign debt crisis in spring 2013. Such a low value is generally only seen in recessionary periods..... Particularly weak was the development in German industry, which suffered from declining global demand.
The currencies of almost all emerging markets came under pressure. The signs of a slowdown in the global economy have intensified. One of the biggest losers was the Turkish Lira. It lost more than 4 percent to the dollar. In return, especially the Japanese yen has risen. Due to the large number of negative reports many investors fled into the supposedly "safe haven".
The British pound has largely recovered from its losses the previous day. At night, a Chaos Brexit was averted the following week. At the meeting of the EU summit could be agreed on a postponement of the exit until at least 12 April.
Good luck to all and enjoy your weekend !
Todays market reaction is connected with the fundamental view on the second half of this analysis. The price is near first stronger support area. We have to wait and see if support will be build there. If yes we can expect the forming of an head and shoulder formation and open long positions. If this area should break down fast within next two trading days we can expect further down movement to at least first short term trend line support which is near 1.13 €. 200D moving average looks like a soon down crossing with 100D moving average which would implement further market down movement.
Fundamental view
Company sentiment in the eurozone had deteriorated more strongly than expected in March. The purchasing managers' index published by the market research institute Markit has fallen sharply in the industry. At 47.6 points, it reached the lowest level since the sovereign debt crisis in spring 2013. Such a low value is generally only seen in recessionary periods..... Particularly weak was the development in German industry, which suffered from declining global demand.
The currencies of almost all emerging markets came under pressure. The signs of a slowdown in the global economy have intensified. One of the biggest losers was the Turkish Lira. It lost more than 4 percent to the dollar. In return, especially the Japanese yen has risen. Due to the large number of negative reports many investors fled into the supposedly "safe haven".
The British pound has largely recovered from its losses the previous day. At night, a Chaos Brexit was averted the following week. At the meeting of the EU summit could be agreed on a postponement of the exit until at least 12 April.
Good luck to all and enjoy your weekend !
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