EUR/USD Daily Fundamental Forecast – March 29, 2017

The EURUSD pair crashed yesterday in a correction of the upmove that has been going on for a couple of weeks now. The dollar gained in strength across the board and this was useful for the sellers in the pair to start selling the euro which would have come as a relief for them, considering how battered they have been over the last couple of weeks. The strengthening of the dollar pushed the pair towards 1.0800 and this basically wiped out all the gains that the pair had made on Monday.

Euro Crashes Lower

This raises the possibility that the move on Monday could have been a fake move which would in turn mean that we could be in for more correction in this pair as we move forward. But this will be likely known only over the next few days as we watch the price action to see whether this correction continues or whether we see a hold in the move down as we approach the support region around 1.0800 where the pair sits as of this writing.

The dollar had weakened late on Friday and the whole of Monday as we came to know that the Healthcare bill had failed to even come to a vote in the House due to the opposition by the Republicans themselves. But now we hear reports that the bill is back from the dead as the Republicans reach out to like minded Democrats to push through the bill. The US also continues to throw up some strong economic numbers and this was also a reason for the fall of EURUSD during the US session.

Looking ahead to today, we do not have any major news from the US or the Euro region but as we get closer to the end of the month, we are likely to see more and more month end flows and with the dollar strength expected to continue today, we are likely to see EURUSD continue to be under pressure with the region around 1.0800 proving to be key.