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EUR/USD Forecast 24 Mar 2016

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EUR/USD Forecast 24 Mar 2016
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EUR/USD may resume growth after 4 days decline

The pair EUR/USD continued its decline yesterday. The US dollar was able to gain a foothold thanks to the Fed members’ statements and decline in the oil price.

Yesterday the head of the St. Louis Federal Reserve Bank, James Bullard said that the rate can be raised in April. Philadelphia Fed President Patrick Harker also called for raising rates at the April Fed meeting. He expects to raise rates three times this year.

Today, the US is to publish data on durable goods orders. However, forecast expects a decline by 0.2% compared to the previous growth of 1.7%. The US service PMI is expected to rise from 49.7 to 51.3 in the preliminary estimate for March. German consumer climate index published by GfK is expected unchanged in April. In Italy retail sales may show growth in the range of 0.0% to 0.5%.

How to trade

We do not exclude that today the pair EUR/USD will try to demonstrate the correction to the area 1.1250. When the pair EUR/USD reaches the mark of 1.1145, it will resume its growth to the level of 1.1250. We would buy CALL options after the pair EUR/USD push up from the level of 1.1145.

Asset: EUR/USD
Direction: CALL
Target price: 1.1145
Close price: 1.1175
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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