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EUR/USD Forecast 7 Apr 2016

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EUR/USD Forecast 7 Apr 2016
3.9/5 of 4 ratings

We expect rollback of the pair EUR/USD in the first half of the day and then recovery above 1.14

Yesterday the pair EUR/USD was able to overcome the level of 1.14 after the publication of the last Fed meeting minutes. The US FOMC Minutes showed fragmentation of the Committee in relation to the monetary policy rate but reiterated concerns about the consequences of the "cooling" of the Chinese economy.

Despite the fact that the FOMC minutes has helped the pair to increase from the day's lows, it is possible that today the pair EUR/USD will receive new pressure in connection with the expectations from the publication of the last meeting of the ECB's report.

If you remember, at the March meeting the European regulator has presented an ambitious program of further economic stimulus. Perhaps protocol will explain all the reasons for such action more in detail.

Thus, in the first half of the day the movement of the pair EUR/USD to the level of 1.13 may look quite logical. However, be careful with the publication. We do not recommend buy options before the publication as sudden movements in both directions aren’t ruled out.

However, the pair EUR/USD has a good potential for the resumption of movement up, so we recommend to look for entry points at 1.14 and then near 1.1480.

How to trade

We would buy CALL options after the return of the pair EUR/USD to the mark of 1.14.

Asset: EUR/USD
Direction: CALL
Target price: 1.14
Close price: 1.1371
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.

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