EURUSD Rises, ECB President Mentions June Rate Cut【March 8, 2024】
Fundamental Analysis
The ECB decided to keep interest rates unchanged, with the ECB President mentioning the possibility of a rate cut in June.
US unemployment claims came in below expectations, suggesting a solid employment environment.
The Chairman of the US Federal Reserve mentioned a rate cut within the year, leading to a weaker dollar across various pairs including USDJPY.
EURUSD Technical Analysis
Analyzing the daily chart of EURUSD, it has broken above the cloud, currently trading around 1.095 USD. Although there might be some corrective selling at the significant price point of 1.10 USD, the breakthrough above the cloud suggests that buying on dips could continue, maintaining an upward trend.
The next immediate target would be the recent high at 1.110 USD. Tonight’s US employment report is worth paying attention to.
Day Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart of EURUSD, the pair continues to rise, approaching 1.10 USD with momentum. Comments from the ECB President and the Federal Reserve Chairman’s interest rate outlook have relatively driven the dollar weaker.
Analyzing the RSI, it is hovering around 69, indicating that some corrective movement would not be surprising. With the price nearing the 1.10 USD milestone, profit-taking sells could emerge.
It is difficult to aggressively buy today, and caution is advised around the 1.10 USD pullback. Additionally, with the US employment report due, it would be wise to avoid rash trading and adopt a wait-and-see approach.
Support and Resistance Lines
The following are the support and resistance lines to consider:
1.10 USD – Round number
Market Sentiment
EURUSD Sell: 86% Buy: 14%
Today’s important economic indicators
Economic indicators and eventsJapan timeJapan Household Survey & Consumer Spending8:30EU Zone GDP19:00FOMC Member Comments21:00US Employment Report22:30Canada Employment Report22:30
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
