EURUSD: Correction Phase Encounters Fed's Hawkish Tone.
In today's trading session, our attention is on EURUSD, with a potential selling opportunity around the 1.08800 zone. Technically, EURUSD is in a downtrend, and it's currently undergoing a correction phase, nearing the trend at the 1.08800 support and resistance area.
Adding a fundamental layer to our analysis, recent remarks from Federal Reserve Chairman Jerome Powell have influenced our outlook on the market. Powell's warning, communicated yesterday, has emphasized the Fed's intention to refrain from rate cuts in March. This signal suggests a potentially firmer stance on monetary policy, which could strengthen the US dollar against major currencies like the euro.
The ECB's recent focus on data rather than specific dates signals a potential shift in policy stance, suggesting a cautious outlook for the Euro. Economic indicators, including PMIs and GDP tracking for Germany, hint at sluggish growth. Additionally, the ECB's survey data indicates contained inflation expectations and declining plans for wage and price increases among firms. These factors suggest that constraints on the ECB may be easing, potentially leading to a divergence in real interest rate differentials against the Euro in the coming months.
Considering this fundamental development, we anticipate that any further upside in EURUSD may be limited, especially around the 1.08800 level, as the market digests Powell's comments and adjusts its expectations regarding the Fed's policy trajectory.
Trade safe, Joe.
Adding a fundamental layer to our analysis, recent remarks from Federal Reserve Chairman Jerome Powell have influenced our outlook on the market. Powell's warning, communicated yesterday, has emphasized the Fed's intention to refrain from rate cuts in March. This signal suggests a potentially firmer stance on monetary policy, which could strengthen the US dollar against major currencies like the euro.
The ECB's recent focus on data rather than specific dates signals a potential shift in policy stance, suggesting a cautious outlook for the Euro. Economic indicators, including PMIs and GDP tracking for Germany, hint at sluggish growth. Additionally, the ECB's survey data indicates contained inflation expectations and declining plans for wage and price increases among firms. These factors suggest that constraints on the ECB may be easing, potentially leading to a divergence in real interest rate differentials against the Euro in the coming months.
Considering this fundamental development, we anticipate that any further upside in EURUSD may be limited, especially around the 1.08800 level, as the market digests Powell's comments and adjusts its expectations regarding the Fed's policy trajectory.
Trade safe, Joe.
Trade active:
What a waterfall.
Comment:
Strong NFP numbers today, bullish for the dollar.
Comment:
EURUSD is attempting to break previous low.
we will see the coming week and follow up with the trend
EURUSD is attempting to break previous low.
we will see the coming week and follow up with the trend
Trade active:
Breakout and decent retrace of the previous low as anticipated. where next?
Breakout and decent retrace of the previous low as anticipated. where next?
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Seems we are almost there, watching the price action shortly