EUR/USD Daily Fundamental Forecast – March 27, 2018

The EURUSD pair has been trying to punch through the highs for this year but so far, the bulls have not had much luck and hence we see the pair continue to trade near the highs of its range over the last 24 hours. It looks as though it is only a matter of time before the bulls find a way through as more and more large investors and banks seem to be in a mood to accumulate euro.

EURUSD Likely to Breakout

The pair has been strengthened by the weakness in the dollar which has stuck on despite the fact that there has been a receding of the trade worries that had existed in the markets last week. During that period, we had a situation where we could see the dollar under a lot of pressure and the stock markets also falling due to the decision of the US administration to impose tariffs on the Chinese goods. This led to fears of a trade war.

But over the weekend and over the last 24 hours, there has not been much follow up action from any of the larger economies and this has helped to calm the nerves of the market but the dollar continues to remain under pressure. We believe that this is only a temporary relief and that it is highly likely that the spectre of tariffs is going to come back into the markets to bring in added pressure in due course of time.

Looking ahead to the rest of the day, we do not have any major economic news or data from the US or the Eurozone and this is something that is expected due to the fact that it is the last week of the month and hence all such data dries up. But we believe that the month end currency flows should begin anytime soon and this could provide an opportunity for the euro bulls to push higher.