Recent trends have shown a bullish trend as the EUR/USD pair has risen for three consecutive days, hovering around 1.0850 in Asian trading on Monday. The rise was consolidated by a drop in dollar demand due to inflation fears. Moreover, encouraging economic data from the Eurozone expanded positive sentiment towards the euro, driving the pair up significantly.
However, the EUR/USD pair is highly susceptible to changes in market mood determined by global macroeconomic factors. A cautious approach to investing is recommended as geopolitical uncertainties and central bank policies may play a role and cause sudden trend reversals.
A rise could occur if the pair breaks through the upper end of the ascending triangle, exceeds the psychological barrier at 1.0900 and reaches its March peak near the 1.0981 mark. If the first attempt fails, a period of consolidation or a slight retracement could follow, followed by another rise and a decidedly bullish outlook for the pair.
Conversely, if it breaks below the lower end of the ascending triangle, the pair may face bearish pressure and may drop towards 1.0700. For another bullish scenario to unfold, it would need to reach the conclusive 1.0900 mark, but only if it can secure a stance above the 1.0800 level and the 21-day EMA.
Euro rises as eurozone economy thrives
Investors should be aware of the significant risks and the need for careful research before making any financial decision. We strongly recommend consulting with an expert to avoid potential losses due to sudden market fluctuations. Also, staying up-to-date on financial trends is essential to successful investment.
The impact of the inflation data has seen the EUR/USD pair stabilise around the 1.0850 level, but the pair remains resilient to adverse reports as investors adopt a ‘wait and see’ stance. Hopes of a strong economic recovery contrast with the lackluster data, suggesting that the market is anticipating a future uptrend.
The movement of the EUR/USD pair is in line with various factors, indicating the need to pay close attention to upcoming data and news, including the US ISM Manufacturing PMI. Other global indices such as gold, Bitcoin price, and the Dow Jones Industrial Average also call for a smart investment strategy. Investors are awaiting the next announcement from the Federal Reserve on the health of the US economy, which may impact not only the currency market but also commodities such as gold, Bitcoin, etc.
