EUR/USD Forex Signal Today 11/03: Uptrend Continues (Chart)
Bullish view
- Purchase the EUR/USD pair and set a take-profit at 1.100.
- Add a stop-loss at 1.0700.
- Timeline: 1-2 days.
Bearish view
- Promote the EUR/USD pair and set a take-profit at 1.0700.
- Add a stop-loss at 1.100.
The EUR/USD trade fee continued hovering because the US greenback index and American equities plunged forward of the upcoming US inflation knowledge. It rallied to a excessive of 1.0900, its highest stage since November 5 final yr, and 6.45% above the bottom stage this yr.
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US inflation knowledge forward as recession dangers stay
The EUR/USD pair has been in a robust bullish development prior to now few months, with the momentum gaining energy lately. This surge accelerated as buyers began predicting a possible recession within the US due to Donald Trump’s insurance policies.
Trump has added a 25% tariff on items imported from the highest buying and selling companions like Mexico and Canada. He additionally added a 20% tariff on imported items from China, blaming the international locations of permitting fentanyl to america. All these international locations have retaliated in opposition to the US.
Trump has additionally hinted that he would impose additional reciprocal tariffs in April. These are big tariffs which will set off a recession to the US. This explains why the US greenback index and bond yields have plunged prior to now few days. The US greenback index has dropped from $110 earlier this yr to $103.
The following vital catalyst for the EUR/USD pair would be the upcoming US inflation knowledge scheduled on Wednesday. Knowledge by Investing estimates that the headline inflation dropped to 2.9% in February, whereas the core CPI retreated to three.2%.
These inflation numbers could not paint the clearest image about US costs since they won’t embrace the latest tariffs. Analysts anticipate that the headline client costs will maintain rising because the impression of tariffs rise.
EUR/USD technical evaluation
The day by day chart reveals that the EUR/USD trade fee bottomed at 1.0177 on January 13. It has bounced again to 1.0900, the very best swing since November 6.
The pair has jumped above the essential resistance stage at 1.0605, its lowest stage in April final yr. Additionally, the Relative Power Index (RSI) and the MACD indicators have continued rising, an indication that it has the momentum.
The Common Directional Index (ADX) has jumped to 22.2, its highest stage since January 31. This can be a widespread indicator that measures the energy of an asset. Due to this fact, the pair will probably maintain rising as bulls goal the important thing resistance stage at 1.1000. A drop beneath the help at 1.0700 will invalidate the bullish view.
