HomeForex MarketForeign exchange Watchlist: EUR/USD Heading for Parity?

Foreign exchange Watchlist: EUR/USD Heading for Parity?

EUR/USD is breaking a key help zone on the brief and very long time frames!

In case you missed it, European Central Financial institution (ECB) lately confirmed that it’ll finish its bond-buying program in July.

Extra importantly, the central financial institution may even elevate its rates of interest by 25 foundation factors, marking its first price hike since 2011.

And if that’s not hawkish sufficient for ya, ECB members are additionally planning to lift rates of interest some extra in September although the dimensions of the hike will rely on ECB’s inflation outlook.

The (principally anticipated) announcement pushed EUR increased throughout the board together with EUR/USD which hit intraday highs round 1.0770.

The nice occasions didn’t final for the bulls, nevertheless. Considerations over excessive rates of interest choking financial development weighed on European shares and ultimately dragged EUR together with it.

EUR/USD broke under a short-term vary help and is now buying and selling under the 1.0650 mark.

Will EUR see extra losses in opposition to USD?

EUR/USD Day by day Foreign exchange Chart

EUR/USD’s draw back breakout from its vary confirmed a rejection from a development line and 50% Fibonacci retracement resistance zone on the every day timeframe.

It additionally doesn’t assist EUR bulls that Stochastic has simply left the overbought territory and that yesterday’s every day candlestick couldn’t be extra bearish if it developed paws and roared.

Let’s see if as we speak’s knowledge releases result in extra EUR/USD promoting. The U.S. is predicted to print quicker inflation from April to Could. This could help the Fed’s aggressive tightening plans and certain create extra demand for the safe-haven greenback.

Prolonged promoting may drag EUR/USD to new month-to-month lows and/or Could’s lows close to 1.0400. The pair may even drop to parity as some merchants are pricing in!

What do you suppose? Will EUR/USD drop to 1.0000 within the subsequent few weeks? Or will sufficient bulls present as much as break EUR/USD’s months-long downtrend?

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails danger. Please learn our Danger Disclosure to be sure to perceive the dangers concerned.

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