- The market has been registering lower highs and lows since the beginning of the year ; the mid-term trend is bearish.
Indeed, this situation was fueled by fading dovish hopes about the FED's monetary policy in the US, while the ECB has provided investors with hints that its next easing cycle could take place not later than June.
- However, since the impact over 1.0600 in April, it seems the market is correcting that trend.
The latest US NFP report falling short below expectations has revived hopes that the FED won't be able to hold high interest rates for much longer, which mechanically put pressure on the US Dollar.
The market is now trading 180pips higher, around 1.0780, close to its mid-term bearish trendline.
Moving averages have just registered a bullish cross, the first one since the start of the bearish trend.
The RSI indicator has already broken-out its bearish trendline, now in buying zone, while the DMI shows an increasing buying pressure inside a more and more directional price action.
- Fundamentally speaking, having 2 economies heading in the same monetary direction makes it hard to assess where this pair will go for the rest of the year.
However, Technical Analysis tells us investors' appetite for the single currency is growing.
If prices manage to confirm the bullish break-out announced by the technical indicators, we could expect the pair to reach a set of higher targets around 1.08078, 1.0871, 1.0935 and even above 1.10000.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Indeed, this situation was fueled by fading dovish hopes about the FED's monetary policy in the US, while the ECB has provided investors with hints that its next easing cycle could take place not later than June.
- However, since the impact over 1.0600 in April, it seems the market is correcting that trend.
The latest US NFP report falling short below expectations has revived hopes that the FED won't be able to hold high interest rates for much longer, which mechanically put pressure on the US Dollar.
The market is now trading 180pips higher, around 1.0780, close to its mid-term bearish trendline.
Moving averages have just registered a bullish cross, the first one since the start of the bearish trend.
The RSI indicator has already broken-out its bearish trendline, now in buying zone, while the DMI shows an increasing buying pressure inside a more and more directional price action.
- Fundamentally speaking, having 2 economies heading in the same monetary direction makes it hard to assess where this pair will go for the rest of the year.
However, Technical Analysis tells us investors' appetite for the single currency is growing.
If prices manage to confirm the bullish break-out announced by the technical indicators, we could expect the pair to reach a set of higher targets around 1.08078, 1.0871, 1.0935 and even above 1.10000.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.