Euro Held Steady Following Dollar Weakness, Eye On ECB

Fundamental Analysis

* Euro Rides High: EUR/USD remains steady and post modest gains against the dollar as the current weakness in greenback currently offering some support to the major pair due to market cautiousness while investors currently eyeing on the ECB. The greenback fluctuated following a slowdown in services growth followed by unexpectedly strong hiring numbers that prompted the market to pare bets on Federal Reserve rate cuts this year. Despite that, the strong hiring numbers failed to lift the greenback. Chicago Fed President Austan Goolsbee on Monday acknowledged that the U.S. economy remains strong, but wondered how long the Fed can keep monetary policy restrictive. Additionally, investors also cashed in on the currency for profit taking after the dollar hit its highest level since 14 November.

Technical Analysis

* Technical Breakout: EUR/USD was traded higher while currently testing the resistance level 1.0860. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to further extend its gains after it manage to breach above the level.

* Resistance and Targets: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 1.09150 after it breaks above the level 1.08600. Conversely, a failure to breach above level would indicate a technical retracement or potential reversal, potentially leading the price back to the resistance level at 1.0800

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, all eyes will be on the European Central Bank (ECB) as it announces its interest rate decision. The consensus suggests that the ECB will maintain its interest rates at their current levels during its April policy meeting. Recent data revealed an unexpected decrease in inflation for March, fueling speculation about potential rate cuts by the ECB. Investors will be keenly observing for any indications regarding the speed of the easing measures once they are initiated.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and EU data, ECB and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.