During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
ECB Interest Rate Decision Could Spark a Reversal
2023-07-27 • Updated
On Thursday, the European Central Bank is expected to hike interest rates by a quarter percentage point to 3.75%. After July, the certainty of further rate hikes is unclear, leading to a craving for guidance in financial markets. The ECB may turn more cautious in signaling future policy while confirming a data-dependent approach. Core inflation remains stubbornly high, and the impact of a weakening economy on policy is uncertain. Bank lending data suggests tightening financing conditions may lead to speculation that rates are close to peaking.
EURUSD - H4 Timeframe
EURUSD, as seen from the chart, is trading within a drop-base-drop supply zone, with the intersection of the 50-period moving average. Though these aren’t exactly my premium kind of trade ideas, I believe the ‘rates’ decision from the ECB later today will go a long way to influence whether or not this ends up playing out according to the trade idea.
Analyst’s Expectations:
Direction: Bearish
Target: 1.10867
Invalidation: 1.11528
EURAUD - D1 Timeframe
EURAUD is clearly trading inside a wedge pattern, with the most recent price action coming from the rejection at the trendline resistance. From here, this means that we can expect to see a continued drop in prices until it reaches the trendline support - my thoughts. I understand that the moving average threatens the further decline of price. Hence the need to watch out for the outcome of the ECB release patiently.
Analyst’s Expectations:
Direction: Bearish
Target: 1.60888
Invalidation: 1.64472
EURCAD - D1 Timeframe
EURCAD is on its way downwards, having gotten rejected from the resistance trendline. Currently, the price action doesn’t appear to be clear yet since there hasn’t really been a clear break of structure. My plan here, however, is to watch for a break and retest either of the trendlines, then position to trade in the direction of the breakout. In the meantime, I expect that we will see a continuation of the bearish movement soon.
Analyst’s Expectations:
Direction: Bearish
Target: 1.44686
Invalidation: 1.48876
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.
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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...