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...
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
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
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
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
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.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Similar
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...
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
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 ...
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...