Sorry, you need to enable JavaScript to visit this website.

EUR/USD Forecast 17 Mar 2016

You are here

4/5 of 3 ratings

The Fed soft comments brought down the US dollar

The US dollar tried to strengthen against the euro before the Fed meeting. During the day the market was reacting to the positive macroeconomic data for the US.

In February Core CPI gained 0.3% against expectations of 0.2%, it also increases from 2.2% to 2.3% during the year.

After Janet Yellen soft comments the pair added more than 100 points and reached the level of 1.1231.

Today the euro zone is to publish data on CPI, which is expected unchanged 0.2% and trade balance data. If we see growth in the trade balance of the EU, the pair EUR/USD may continue to grow.

How to trade

We would buy call options if the price rises above the level of 1.1246. The unsuccessful attempt to break the level of 1.1246 could lead to the completion of construction of the upward wave.

Asset: EUR/USD
Direction: Call
Target price: 1.1246
Close price: 1.1316
Expiry time: 21:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

You may also read