Pre-ECB Meeting: 23 April Euro Trading Outlook


The Euro continued to weaken on Monday morning, entering a third day of losses against the US dollar. The slide continued despite Monday’s news that Eurozone Composite PMI was unchanged for April at 55.2, holding above the 50-point level that indicates expansion. What more does this 23 April Euro Trading Outlook reveal?

23 April, OctaFX – A rise in U.S. Treasury yields to 3 percent has helped boost the greenback to its highest levels in over two weeks. The US dollar has also been underpinned by a hawkish stance from the Federal Reserve. Fed officials have signalled additional interest rate increases in 2018 based on signs of positive economic growth.

Pre-ECB Meeting: 23 April Euro Trading Outlook

The European Central Bank (ECB) holds its monetary policy meeting on Thursday. Policymakers are widely expected to signal no change in key interest rates and the central bank’s quantitative easing program. Analysts expect a dovish stance from ECB president Mario Draghi amid the recent slowdown in inflation.

EUR/USD has been in an uptrend since January of 2017 and remains above the 200 period simple moving average on the daily timeframe. However, the pair has been range bound between 1.2154 and 1.2554 for three months. On Monday morning EUR/USD broke below the lower trendline of a pennant pattern. A break below the 1.2154 level would expose the next major level of support at the 200 period simple moving average.

Disclaimer

This article about 2Pre-ECB Meeting 23 April Euro Trading Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.

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