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EURUSD Market Update

3/8/2023 12:06 PM

Against the strengthening of the US dollar, the EUR/USD pair is declining, trading at 1.0535.

Today, Q4 2022 data on the EU gross domestic product (GDP) will be released: analysts suggest that the indicator will add only 0.1% MoM, acting, in turn, as a catalyst for a slowdown in annual growth rates to 1.9% YoY. Also, investors are waiting for the publication of a report on employment, which may be corrected to 1.7% from 1.8% earlier.

The US dollar returned to positive dynamics, trading at 105.800 in the USD Index. The main attention of experts is focused on yesterday's speech by the head of the US Federal Reserve, Jerome Powell, regarding the further monetary policy of the regulator: the official said that the interest rate increase will continue, and the peak of the indicator will become much higher. The agency is ready to toughen its “hawkish” rhetoric if macroeconomic indicators will contribute to this. Against the backdrop of Powell's speech, futures for interest rates went up sharply: yesterday, the probability of a rise of 50.0 basis points was 24.0%, and today, it reached 48.0%.

On the daily chart, the trading instrument continues its corrective movement within the global ascending corridor with dynamic boundaries 1.0550–1.1100.

Technical indicators strengthen the sell signal: fast EMAs on the Alligator indicator are below the signal line, expanding the range of fluctuations, and the AO histogram forms corrective bars, falling in the sell zone.

Resistance levels: 1.0670, 1.0850. | Support levels: 1.0480, 1.0320.

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