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EUR/USD Forecast 23 Mar 2016

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EUR/USD Forecast 23 Mar 2016
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EUR/USD shows a decline despite the positive European data

The pair EUR/USD showed a decrease after the news about the explosions in Brussels. But it was able to recover due to the positive data to the end of the day.

Eurozone, German and French PMI are better than forecasts. German IFO business climate index confirmed that the business is just waiting for a good future. German ZEW economic sentiment was weaker than the forecast.

Today, it is worth to pay attention to the speech of the head of Bundesbank Jens Weidmann at a financial forum in Liechtenstein. He will certainly talk about the ECB policy easing at the last meeting.

Today the US is to publish data on new home sales in February. The forecast is 510K vs. 494K in January. The US Department of Energy will publish data on crude oil inventories. The forecast assumes the growth.

How to trade

We expect growth of the pair EUR/USD after the breakdown of 1.1370. Short-term downward movement, as well as the consolidation, are possible in the range of 1.1238 - 1.1180. If the pair EUR/USD breaks the level of 1.1180, we would buy PUT options.

Asset: EUR/USD
Direction: PUT
Target price: 1.1180
Close price: 1.1179
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.

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