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

EUR/USD Forecast 30 Mar 2016

You are here

EUR/USD Forecast 30 Mar 2016
5/5 of 2 ratings

Investors expect the long-term decline of the US dollar

Yesterday Janet Yellen comments disappointed investors, which created conditions for a new wave of growth of the pair EUR/USD.

We have already noted that the pair has a good potential to strengthen, given the European currency is highly oversold on radical steps of the ECB and the US dollar is overbought on expectations on the Fed raising rates.

Earlier we heard the talks about the April increase, now we see softer versions of the monetary policy. This can set the tone for a long-term decline of the US dollar with the growth of the pair EUR/USD above 1.1500.

In this respect, a key step will be the publication of the report on employment change, published by ADP. If the indicator is weaker than expected, the pair EUR/USD will try to break through the level of 1.1350 and go higher.

How to trade

We would buy CALL options if the pair EUR/USD rises above 1.1325.

Asset: EUR/USD
Direction: Call
Target price: 1.1325
Close price: 1.1335
Expiry time: 20:00 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