EURUSD: the pair is targeting the 2020 low
The euro's fall continues against the backdrop of approaching the next meeting of the US Federal Reserve on May 4, at which the regulator is likely to raise interest rates by 25–50 basis points. Only 0.2% of experts believe that monetary policy will not change. The US dollar is likely to strengthen against all major currencies in the long term. By raising the rate, the regulator hopes to bring inflation under control: according to the latest data, the consumer price index in the US reached a record high in 40 years – 8.5%.
Inflation in the EU is not far behind at 7.4%, but the European Central Bank is in no hurry to tighten monetary policy. So far, all that is known is that in the second half of 2022, the curtailment of the bond redemption program may begin, and only then the agency will consider raising the rate. Until the ECB takes decisive action and until the end of the military conflict in Ukraine, the euro is likely to decline against the US dollar.
The long-term trend is downwards. After the price consolidates below 1.085, the decline continues to the 2020 low at 1.0650. The nearest resistance, from which one can consider selling, is 1.085.
The medium-term trend is down. This week, market participants are trying to break through target zone 2 (1.08–1.0781). The next sell target will be zone 3 (1.0608–1.0589) if they succeed. The key resistance of the trend is shifting to the levels (1.0968–1.0949).
Resistance levels: 1.085, 1.117 | Support levels: 1.065, 1.05
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The euro's fall continues against the backdrop of approaching the next meeting of the US Federal Reserve on May 4, at which the regulator is likely to raise interest rates by 25–50 basis points. Only 0.2% of experts believe that monetary policy will not change. The US dollar is likely to strengthen against all major currencies in the long term. By raising the rate, the regulator hopes to bring inflation under control: according to the latest data, the consumer price index in the US reached a record high in 40 years – 8.5%.
Inflation in the EU is not far behind at 7.4%, but the European Central Bank is in no hurry to tighten monetary policy. So far, all that is known is that in the second half of 2022, the curtailment of the bond redemption program may begin, and only then the agency will consider raising the rate. Until the ECB takes decisive action and until the end of the military conflict in Ukraine, the euro is likely to decline against the US dollar.
The long-term trend is downwards. After the price consolidates below 1.085, the decline continues to the 2020 low at 1.0650. The nearest resistance, from which one can consider selling, is 1.085.
The medium-term trend is down. This week, market participants are trying to break through target zone 2 (1.08–1.0781). The next sell target will be zone 3 (1.0608–1.0589) if they succeed. The key resistance of the trend is shifting to the levels (1.0968–1.0949).
Resistance levels: 1.085, 1.117 | Support levels: 1.065, 1.05
-----------------------------------------------------------------------------------------
Solid ECN Securities
Open Free account
Account table > 1:1000 Leverage > Micro > ECN > Standard > Swap-free
Promotions > %40 Deposit bonus > Negative Balance Protection
solidecn.com
-----------------------------------------------------------------------------------------
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