Will EUR/USD breach 50-DMA support?


The three-day losing streak in the EUR/USD pair appears to have come to a halt around the 50-DMA level of 1.0674 this Friday morning. The pair failed to hold above the 200-DMA level earlier this week.

ECB Taper/rate hike is still a distant dream…

Euro bulls got a wakeup call earlier this week after reports hit the wires earlier this week that the ECB policy makers are reluctant to make any changes to the bank’s policy statement in April and feel the markets misread the ECB’s message in March from beginning to price in a rate hike by later this year.

This triggered a sell-off in the EUR/USD pair from the high of 1.0906 to 1.0672. The EUR is likely to stay on weaker footing as the market scale back their expectations of a rate hike ahead of the April meeting.

Reflation trade revival

The US Q4 GDP was revised higher to 2.1% from the preliminary estimate of 1.9%. Meanwhile, personal spending was revised higher to 3.5% and that seems to have triggered a revival of the Trumpflation/Reflation trade.

Overall, the EUR/USD looks set to take out the 50-DMA support… especially if US personal spending due later today prints higher than expected. The 10-year treasury yield could break above 2.43% on strong data, leading to a broad based USD rally.

EUR/USD Technical Levels

A break below 1.0674 (50-DMA) would expose the downward sloping 100-DMA seen at 1.0632, under which the losses could be extended to 1.06 (zero figure). On the other hand, a break above 1.0706 (Mar 16 low) would open doors for a re-test of 1.0759 (5-DMA) and 1.0772 (10-DMA).

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Bearish Neutral High
1H Strongly Bearish Oversold Expanding
4H Bearish Oversold Shrinking
1D Bearish Neutral Low
1W Bearish Neutral Low

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds on to weekly gains, aims to 1.2100

EUR/USD pressures this week high at 1.2079 after the EU services sector moved back into expansion territory according to Markit, the first time since August.

EUR/USD News

GBP/USD extends decline towards the 1.3800 price zone

Upbeat UK data fell short of boosting the pound, hurt by Brexit jitters in Ireland. US macroeconomic figures making the difference in the dollar’s favor.

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD drops below $1,780 area as US T-bond yields rebound

Gold lost its traction after climbing toward $1,800 on Friday. 10-year US Treasury bond yield is up nearly 2%. Latest PMI data from US underlined strong price pressures.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures