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US DOLLAR FORECAST – EUR/USD, USD/CAD
The U.S. greenback pauses after Tuesday’s sturdy rally, with the DXY index shifting up and down across the flatlineThe absence of follow-through to the upside doesn’t essentially sign a lack of conviction within the bullish outlookThis text examines the near-term technical outlook for 2 key pairs: EUR/USD and USD/CAD
Really useful by Diego Colman
Constructing Confidence in Buying and selling
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Following Tuesday’s strong efficiency, the U.S. greenback confirmed indicators of indecision on Wednesday, shifting between small positive factors and losses, however in the end not going wherever, with the DXY index buying and selling across the 104.80 stage in early afternoon buying and selling in New York.
The absence of follow-through to the upside doesn’t essentially sign that the bulls are dropping conviction or are falling by the wayside, however could also be a sign of a pause within the uptrend after the sturdy rally seen this 12 months. In any case, traits hardly ever proceed in a linear style with out interruption.
Trying on the greater image, the restricted progress on disinflation over the previous month signifies that the Fed might delay the beginning of its easing cycle and solely lower charges modestly when the method begins. Such a situation might bias yields larger, preserving the U.S. greenback in an upward trajectory after a interval of consolidation.
Leaving fundamentals apart for the second, the rest of this text might be dedicated to analyzing the technical outlook for 2 main U.S. greenback pairs: EUR/USD and USD/CAD. On this part, we’ll define necessary value thresholds that might act as assist or resistance within the coming buying and selling periods.
For a complete evaluation of the euro’s medium-term prospects, be certain to obtain our Q1 buying and selling forecast in the present day. The information is free!
Really useful by Diego Colman
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EUR/USD FORECAST – TECHNICAL ANALYSIS
EUR/USD ticked larger on Wednesday, recovering a few of the earlier session’s losses, with costs recapturing the 1.0720 stage. If the rebound positive factors momentum within the coming days, resistance seems across the 1.0800 deal with. On additional energy, all eyes might be on the 200-day easy shifting common.
Conversely, if EUR/USD resumes its retracement and slips under 1.0720 on every day closing costs, we might see a potential pullback in direction of 1.0650, which corresponds to the Could 2023 lows. Additional weak point past this threshold may draw consideration to 1.0520.
EUR/USD CHART – TECHNICAL ANALYSIS
EUR/USD Chart Created Utilizing TradingView
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Change in
Longs
Shorts
OI
Each day
20%
15%
18%
Weekly
-16%
22%
1%
USD/CAD FORECAST – TECHNICAL ANALYSIS
USD/CAD paused on Wednesday following Tuesday’s huge rally, with costs making an attempt to consolidate above the 100-day easy shifting common. If the advance resumes over the subsequent day days, overhead resistance emerges at 1.3570. From this level, subsequent positive factors might deliver 1.3620 into focus.
On the flip aspect, if sellers return and set off a bearish reversal from the pair’s present place, preliminary assist may be noticed round 1.3535, adopted by 1.3485, a tad above the 200-day easy shifting common. Bears should defend this flooring tooth and nail; failure to take action might spark a transfer in direction of 1.3450.
USD/CAD TECHNICAL CHART
USD/CAD Chart Created Utilizing TradingView
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