Euro: Will the Bullish Pressure Persist?

Euro: Will the Bullish Pressure Persist?

2023-06-16 • Updated

The European economy trudged along with meager growth from the first quarter, lacking the oomph needed to gain momentum. As inflation persists and groceries become pricier, people become more reluctant to part with their hard-earned paychecks. The recent 0.1% increase from the previous quarter falls short of expectations, and the United States isn't faring much better, fueling concerns of a potential recession in the world's largest economy. Luckily, the eurozone managed to avoid a winter recession, partly due to mild weather that eased pressure on natural gas supplies. However, with Russia's reduction in gas supply due to its conflict with Ukraine, European governments and utilities are scrambling to find alternative sources to keep homes warm and industries running. It's an interesting dance the European economy is performing, and as forex traders, it's essential to watch these developments.

EURGBP - Daily Timeframe

EURGBPDaily-1606.png

There’s been a notable steady decline in the exchange rate of the Euro to the Great British Pound, as seen in the chart above. However, the movement still seems to have a long way to go. This means we may see more bearish pressure on the Euro possibility until the price reaches the highlighted pivot zone.

Analyst’s Expectations: 

Direction: Bearish

Target: 0.84626

Invalidation: 0.85993

EURAUD - Daily Timeframe

 EURAUDDaily-1606.png

EURAUD has reached an important demand zone and is stalling in hopes of a strong price movement in favor of either direction. At this time, my sentiment on EURAUD is bullish mainly based on the following sentiments;

  • Drop-base-rally demand zone
  • Support trendline; and the
  • Bullish moving average array

Analyst’s Expectations: 

Direction: Bullish

Target: 1.60371

Invalidation: 1.58337

EURJPY - Weekly Timeframe

 EURJPYWeekly-1606.png

Now this analysis is from a pretty high timeframe - the weekly timeframe. As such, it is important to understand that proper confirmation must be sought from lower timeframes like the 4 Hours and the Daily timeframe. The EURJPY chart shows price trading within a rising wedge while approaching an area of resistance. The bearish sentiment is supported by confluences from the resistance trendline, the pivot zone, and the Fair-Value-Gap (FVG) on the monthly timeframe.

Analyst’s Expectations: 

Direction: Bearish

Target: 150.276

Invalidation: 159.208

EURCAD - Daily Timeframe

 EURCADDaily-1606.png

EURCAD started a sluggish bull run a few days ago. The movement is losing some steam at the moment. However, I expect to see a continuation of the bullish movement after the completion of a slight bearish retracement. Though there seems to be just a little to go on, as far as confluences are concerned, the price action on the lower timeframe would judge the final outcome.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.45455

Invalidation: 1.43289

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

CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

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...

Trade of The Week: AUDNZD Trade Breakdown
Trade of The Week: AUDNZD Trade Breakdown

The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

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.

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