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EUR/USD Finishes the Day Lower

By:
Colin First
Published: Apr 23, 2018, 07:38 UTC

The pair has corrected on the back of dollar strength

EURUSD Monday

USD gained uptrend momentum across the week closing on bullish note influenced by combination of US higher T-yields and softer data coming from rival economies. The EUR/USD moved around 1.2400 range mid-week and ended up at 1.2287 due to slow economic movement and softer inflation readings. This has caused many investors to expect ECB to maintain Quantitative Easing in place in monetary policy meet to be held coming Thursday.

EURUSD Lower

Early clues that could confirm or deny this sentiment will be out this week, as Markit will release its preliminary April PMI this week, while US officers have maintained hawkish comments across the week due to solid macroeconomic data which has caused speculations for possible interest hike this year. While the market has possibility for highly volatile swings in trading sessions to come this week, the pair has started the week on dovish note due to uncertainty coming from political font.

EURUSD Hourly
EURUSD Hourly

While the current trend is bearish, the difference in price range is within a narrow price range and further price movement in trading sessions to come this week could help predict if EURO would really crack under pressure and endure and move back up on a new bull run. However continued dovish readings for Euro Zone in preliminary PMI data to be released this week could help US dollar gain further as Federal Reserve looks keen to raise interest rates this year. Major news to look out for today are preliminary Service, Manufacturing and Markit Composite PMI’s for US & Euro Zone to be released later today.

Today’s morning trading session has so far shown USD to remain strong and technical approach also shows bear’s grip on market as candles gain downward traction with price moving downwards on steady pace below 14-day Exponential Moving Average. Stochastic oscillator indicator which is used to identify the momentum of an instrument is also drifting towards oversold region across hourly, daily and weekly charts which strongly supporting continued bearish movement in near future trading session with no immediate signs of bullish breakout.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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