Euro / U.S. DollarShort
EUR/USD about to break to new yearly lows?
Even though the economic calendar is relatively thin into the start of the week, it will be interesting to see the aftermath of the Non-Farm Payrolls last Friday, Retail Sales data from the Eurozone today and the market's reaction after Trump's announcement of new tariffs on Chinese products on Sunday, emphasising that the negotiations are not going fast enough.
That said, a stronger USD seems likely on a broad front, especially against the Euro, which is also likely to be attacked by Trump in regards to tariffs. The reason for this? The currencies of the affected economies (China and Europe) should see losses of their respective currencies to counter the negative impacts of tariffs on their goods against the USD.
If today's Retail Sales data for the Eurozone disappoint as well, a push lower in the EUR/USD seems likely. Numbers for February came in strong and rose 2.8% from a year earlier, following growth of 2.2% in January and easily beating market expectations of 2.3%.
But several weak data sets from Germany and the Eurozone over the last weeks leave chances high that the dataset today could come in below expectations, too, resulting out of rising recession fears, Brexit uncertainties and repeated tariff threats against the Eurozone.
From a price action perspective, only a push back above 1.1260 would brighten the technical picture on H4, on a daily time-frame we consider a daily close above 1.1330 crucial to revoke the advantage from the bears.
As long as we trade below 1.1260, another stint down towards and below 1.1100 is an option.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
That said, a stronger USD seems likely on a broad front, especially against the Euro, which is also likely to be attacked by Trump in regards to tariffs. The reason for this? The currencies of the affected economies (China and Europe) should see losses of their respective currencies to counter the negative impacts of tariffs on their goods against the USD.
If today's Retail Sales data for the Eurozone disappoint as well, a push lower in the EUR/USD seems likely. Numbers for February came in strong and rose 2.8% from a year earlier, following growth of 2.2% in January and easily beating market expectations of 2.3%.
But several weak data sets from Germany and the Eurozone over the last weeks leave chances high that the dataset today could come in below expectations, too, resulting out of rising recession fears, Brexit uncertainties and repeated tariff threats against the Eurozone.
From a price action perspective, only a push back above 1.1260 would brighten the technical picture on H4, on a daily time-frame we consider a daily close above 1.1330 crucial to revoke the advantage from the bears.
As long as we trade below 1.1260, another stint down towards and below 1.1100 is an option.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.