Having found strong bids once again ahead of the 1.23 handle in Asia, the 29 March EURUSD Fundamental Forecast shows that the pair attempted a steady recovery from four-day troughs, with the bulls now looking to extend the bounce heading into the early European trading. What is more?
29 March, GKFX – The selling interest around the US dollar gathered pace over the last hours, prompting a fresh bounce in the spot.
Month/ quarter-end flows continue to drive the EUR markets
The greenback paused its recent rebound and fell back into the red zone amid a bout of profit-taking, as markets seek to lock-in gains ahead of the US data dump due later on Thursday.
Also, the renewed uptick in the major can be due to a readjustment of the positions, as markets head into the Easter holiday-break, with thin trades to drive the sentiment in the upcoming sessions.
In the meantime, the EUR traders await the German CPI release, with softer figures likely to halt the relief rally in the pair. Also, in focus remains the US core PCE price index and consumer sentiment data, which may offer some near-term trading opportunities.
29 March EURUSD Fundamental Forecast
Commerzbank’s Analyst Karen Jones notes,
“EUR/USD has not maintained the break above the early March high at 1.2447 and there has been some slippage. The market has eroded the 55-day ma and in doing so neutralized our outlook. We remain unable to rule out a retest of the January and February highs at 1.2538/56 and the long-term downtrend at 1.2651, but this is looking less likely. We would allow for a slide to the 1.2240 20th March low.”
“Key support remains the 1.2192/55 area. This is made up of the mid-January and current March lows and the 2017-2018 uptrend. A weekly close below here would add weight to the idea that the market recently topped at 1.2556,”
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