Wed, Mar 29, 2023 @ 04:17 GMT
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EUR/USD: Initial Reversal Signal is Developing on Daily Chart

The Euro is holding a bit firmer footing in early European trading on Thursday after dollar failed to benefit more from recent hawkish comments from Fed officials.

Fresh strength might be generating an initial reversal signal after yesterday’s action ended in inverted hammer candle and oversold stochastic turned north.

However, this is still insufficient and more action at the upside will be needed to verify bullish signal, as momentum indicator on daily chart is still in the negative territory.

Fresh recovery pressures initial Fibo barrier at 1.0754 (23.6% of 1.1032/1.0669 bear-leg), but acceleration through 1.0800/20 zone (Fibo 38.2% / 10DMA) is needed to ease downside pressure and open way for stronger recovery.

Otherwise, limited upticks would likely mark a correction ahead of continuation of a bear-leg from 1.1032 (Feb 2 peak).

Lower than expected figures of German harmonized CPI in January contributed to Euro’s fresh strength, but markets look for more signals.

European Commission meets today and will release its economic growth forecast, while weekly jobless claims are the key release in US.
Traders await stronger signals from the US inflation report, due next Tuesday.

Res: 1.0781; 1.0807; 1.0819; 1.0850
Sup: 1.0679; 1.0590; 1.0573; 1.0483

Windsor Brokers Ltd
Windsor Brokers Ltd
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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