EUR/USD Forex Signal Today 21/04: Bullish Pattern (Chart)
Bullish view
- Purchase the EUR/USD pair and set a take-profit at 1.1450.
- Add a stop-loss at 1.1250.
- Timeline: 1-2 days.
Bearish view
- Promote the EUR/USD pair and set a take-profit at 1.1250.
- Add a stop-loss at 1.1450.
The EUR/USD exchange rate continued to soar this month and is hovering at its highest degree since February 2022. It has risen within the final 4 consecutive weeks, and is about 12% above its lowest level this 12 months.
Trump threats to fireside Jerome Powell
The EUR/USD pair has been in a robust bull run because the US greenback index continued its sell-off. After hovering to a excessive of $110 earlier this month, the index fell to $99.2, its lowest degree since 2022.
The greenback has plummeted because of Donald Trump’s commerce battle, prompting many economists to foretell that the US will slip right into a recession this 12 months. Polymarket estimates place odds of a recession this 12 months at 65%.
The dollar has additionally plunged as Donald Trump piled strain on the Federal Reserve to chop rates of interest. In line with Kevin Hassett, the pinnacle of the Financial Council of advisors, he’s learning whether or not he can fireplace the Fed Chair, a transfer that may decrease investor confidence.
On the constructive facet, authorized specialists agree that the president can solely fireplace the Fed Chair for trigger, a time period extensively understood to imply misconduct or unlawful actions.
The EUR/USD pair has jumped as European property have emerged as safe-havens throughout this commerce battle. Certainly, European benchmarks such because the German DAX and French CAC 40 have outperformed their American counterparts, together with the Nasdaq 100 and S&P 500 indices.
The pair additionally rose after the European Central Financial institution slashed rates of interest once more final week. Officers hinted that they could reduce charges once more later this 12 months because it offers with Donald Trump’s commerce battle. On the constructive facet, Trump hinted that he was optimistic of reaching a commerce cope with Europe later this 12 months.
EUR/USD technical evaluation
The EUR/USD change fee continued its sturdy rally, reaching its highest level in years. It has moved above the important thing resistance level at 1.1207, the higher facet of the cup and deal with sample proven in inexperienced. This cup has a depth of 9.3%, which means that it’ll ultimately rise to 1.2240. This goal is derived by measuring the identical distance from the cup’s higher facet.
The EUR/USD pair stays above the 50-day and 100-day transferring averages, whereas oscillators have continued rising. Due to this fact, the pair will doubtless maintain hovering as bulls goal the important thing psychological level at 1.1400. The choice state of affairs is the place it drops and retests the higher facet of the cup at 1.1207.
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