With the upcoming release of crucial inflation data on Wednesday, the EUR/USD pair is poised for heightened volatility. The USD, known for its resilience in global markets, is expected to experience fluctuations as investors eagerly await insights into the Federal Reserve's stance on interest rates.
Speculation surrounding the timing of potential rate cuts by the Fed has intensified, suggesting adjustments may occur later than previously anticipated, possibly extending beyond June. However, I maintain a contrarian view, suggesting the Fed may refrain from implementing any rate cuts throughout the year. This perspective is rooted in the anticipation of distressing inflation data, which could trigger a significant surge in bond yields, potentially surpassing the 5% mark.
Here's my forecast for the US 10-year yield for this week:
Here's my forecast for the US 10-year yield for this second and third quarter:
Trade Idea:
Take Profit (TP): 1.0712
Stop Loss (SL): Previous week highs at 1.0877
The choice of 1.0712 as the Take Profit level is strategically aligned with the -1.618 Fibonacci extension, serving as a pivotal target for this trade setup.
As we navigate through the anticipated volatility in the EUR/USD pair, it's crucial to approach trading with caution and diligence. By adhering to robust risk management practices and staying informed about evolving market dynamics, we can navigate potential opportunities and challenges effectively.
Disclaimer:
The information provided is for educational and informational purposes only and should not be considered as financial advice. Trading Forex carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. You should carefully consider your financial situation and consult with a qualified financial advisor before making any investment decisions.
Speculation surrounding the timing of potential rate cuts by the Fed has intensified, suggesting adjustments may occur later than previously anticipated, possibly extending beyond June. However, I maintain a contrarian view, suggesting the Fed may refrain from implementing any rate cuts throughout the year. This perspective is rooted in the anticipation of distressing inflation data, which could trigger a significant surge in bond yields, potentially surpassing the 5% mark.
Here's my forecast for the US 10-year yield for this week:
Trade Idea:
Take Profit (TP): 1.0712
Stop Loss (SL): Previous week highs at 1.0877
The choice of 1.0712 as the Take Profit level is strategically aligned with the -1.618 Fibonacci extension, serving as a pivotal target for this trade setup.
As we navigate through the anticipated volatility in the EUR/USD pair, it's crucial to approach trading with caution and diligence. By adhering to robust risk management practices and staying informed about evolving market dynamics, we can navigate potential opportunities and challenges effectively.
Disclaimer:
The information provided is for educational and informational purposes only and should not be considered as financial advice. Trading Forex carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. You should carefully consider your financial situation and consult with a qualified financial advisor before making any investment decisions.
