EUR/USD Technical Analysis – EUR/USD Trading: 2022-04-05

 EUR/USD Technical Analysis – EUR/USD Trading: 2022-04-05

EUR/USD Technical Analysis.

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EUR/USD Technical Analysis Summary

 Sell StopÖ‰ Below 445

Stop Loss: Above 490

IndicatorSignal
RSINeutral
MACDBuy
MA(200) Neutral
FractalsNeutral
Parabolic SARSell
Bollinger BandsNeutral
  

 

EUR/USD Chart Analysis

EUR/USD Technical Analysis

On the daily timeframe, EURUSD: D1 is in a downtrend. He went down from the bear flag pattern. A number of indicators of technical analysis formed signals for further decline. We don’t rule out a bearish movement if EURUSD: D1 drops below the latest down fractal: 1.094. This level can be used as the entry point. Initial risk cap is possible above the last up fractal, upper Bollinger band and Parabolic signal: 1.124. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we are changing the potential profit/loss ratio in our favor. The most cautious traders after making a trade can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (1.124) without activating the order (1.094), it is recommended to delete the order: the market is experiencing internal changes that were not taken into account.

Fundamental Analysis of Forex – EUR/USD

Inflation in the Eurozone has increased again. Will the EURUSD quotes continue to decline?

On April 1, preliminary data on inflation in the EU for March were released. It was the highest it has been since the EU was created in 1993. The growth of the European Union Consumer Price Index in March amounted to +7.5% y/y. The next meeting of the European Central Bank (ECB) will take place on April 14. So far, it is unlikely that he will tighten his monetary policy or raise the rate (0%). This may be hindered by economic problems in Europe amid anti-Russian sanctions. In the US, also on April 1, good economic data on the labor market for March were published. Nonfarm Payrolls (431K) exceeded the forecasts. An additional negative for the euro could be the plans of the European Union to tighten economic sanctions against Russia. This can further increase the cost of hydrocarbons in the EU and, as a result, the costs of European producers. In January, the European Union Producer Price Index already rose by a record 30.6% y/y. On April 6, data for February will be released, which may affect the euro.

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