EUR/USD Signal Today 19/02: Hits Crucial Resistance (Chart)
Bearish view
- Promote the EUR/USD pair and set a take-profit at 1.0350.
- Add a stop-loss at 1.0525.
- Timeline: 1-2 days.
Bullish view
- Purchase the EUR/USD pair and set a take-profit at 1.0525.
- Add a stop-loss at 1.0350.
The EUR/USD pair retreated after hitting a vital resistance at 1.0510 as merchants targeted on the upcoming Federal Reserve minutes. It dropped to a low of 1.0445 because the latest rebound pale.
FOMC minutes and ECB assembly forward
The pair retreated as traders embraced a risk-off sentiment amid issues about tariffs now that the 30-day deadline for Canada and Mexico is approaching. This risk-off sentiment helped to push the US greenback index increased by 0.30% to $107. It additionally pushed US equities a lot decrease, with the Dow Jones and Nasdaq 100 indices falling by 160 and 72 factors, respectively.
Analysts anticipate that Donald Trump will transfer forward together with his tariff menace on Canadian and Mexican items subsequent month. He has additionally pledged to implement extra tariffs on European items, a transfer that may result in extra volatility.
The following key EUR/USD information would be the upcoming European Central Financial institution (ECB) non-monetary coverage assembly. Whereas the committee just isn’t anticipated to do something, there’s a chance {that a} assertion by a number of officers will have an effect on the euro.
The US will publish a number of vital financial knowledge, together with housing begins and constructing permits. These numbers will present extra coloration concerning the state of the housing market now that mortgage charges have remained excessive.
The Federal Reserve will publish minutes of the final assembly when it left rates of interest unchanged at 4.5%. Officers maintained a hawkish tone, emphasizing that it’s going to solely reduce rates of interest when inflation exhibits progress.
With inflation rising, analysts anticipate that the Federal Reserve is not going to reduce rates of interest quickly. As a substitute, most of them anticipate it to carry them regular for some time till costs begins falling.
EUR/USD technical evaluation
The EUR/USD pair has remained in a good vary up to now few weeks. It rose to the important thing resistance degree at 1.0505, which coincided with its highest level in January. It has discovered a robust resistance and is hovering on the 50-day shifting common.
The Relative Energy Index (RSI) and the MACD indicators have continued pointing upwards. Due to this fact, the pair might resume the downward development as bears goal the decrease aspect of the channel at 1.0215.
Nonetheless, a transfer above the important thing resistance degree at 1.0506 will affirm the bullish strikes and level to extra beneficial properties, probably to 1.0600.
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