There are two VERY imporant, key meetings this month. FED and ECB. ECB meeting is scheduled for this Thursday and we need to be very careful. There is a possibility for a rate cut by 10/20 bp although the expectations are that there will be no cut, but we need to be prepared for everything. The inflation is low, EU zone recovery is stagnant, EM (Emerging Markets) are slowing down and ECB could take action. Adding to that I also expect further QE.
Technically the EURUSD is contained within the equidistant channel and we might see some weaker price action until Thursday. That being said the pair is still in "Sell the Rallies" mode. The first POC (DPP,38.2,E89) is in 1.0610-20 zone while the 2nd POC is just a bit higher in 1.0640-50 zone (double top, EQ channel high, 61.8). If the pair manages to stay below 1.0690 we could see a further drop towards 1.0520.
EURUSD is moving slowly which is normal considering an upcoming ECB meeting and I dont expect anything big before Thursday.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.