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Greenback Remains at 2-Year Highs

RoboForex Ltd Broker

By RoboForex Analytical Department

EUR/USD is still looking rather weak. On Monday 18 April, the major currency pair is trading at 1.0799, but investors aren’t too active due to the Easter holidays in the Catholic countries.

Last Thursday, EUR/USD dropped to its 2-year lows at 1.0757 amid global risk aversion. Another factor that failed the European Currency is the ECB’s unreadiness to tighten its monetary policy. In contrast to other global central banks, the ECB is obviously losing due to its unwillingness to fight the boosting CPI using available monetary tools.

At the same time, market players are preparing for the US Fed May meeting where the regulator is expected to raise the benchmark interest rate by at least 50 basis points as a response to the inflation upsurge.

In the H4 chart, EUR/USD continues to fall towards 1.0735. Later, the market may correct to test 1.0828 from below and then form one more descending wave with the target at 1.0727. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 and may continue falling to update the lows.

EUR/USD forecast


As we can see in the H1 chart, after completing the correction at 1.0828, EUR/USD is expected to resume falling towards 1.0736 and then start a new correction to return to 1.0828. Later, the market may resume trading downwards with the short-term target at 1.0727. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after reaching 20, its signal line may resume moving towards 50 and then start a new decline to return to 20.

EUR/USD forecast


Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Source: https://roboforex.com/
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