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EUR/USD Forecast 8 Apr 2016

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EUR/USD Forecast 8 Apr 2016
4.8/5 of 3 ratings

EUR/USD lost the support of the ECB

Yesterday's statements by Mario Draghi about the precarious state of the European economy and the intention of the regulator to lower the rate even more put pressure on the pair EUR/USD.

We remember that earlier ECB promised not to take any actions. Now, this fact can be no longer considered and we may anticipate the possibility of further easing.

Yesterday, Europe introduced the weak data. In February, the French trade balance showed a deficit of -5.2 billion against the forecast of -3.8 billion. In Spain, industrial production fell to 2.2%.

Today, France is to publish data on industrial production for February, the forecast is -0.4% versus 1.3% in January. Germany has published positive data on the trade balance and exports.

How to trade

We look forward to a possible movement in the range of 1.1412 - 1.1470. If the pair EUR/USD is able to break down the mark of 1.1360, it will rush to the area of 1.1324. We would buy PUT options if the pair falls below 1.1360. We would buy CALL options if the pair rises above the level of 1.1412.

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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