In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for 12th March 2024.
Key Takeaways
- Doubts about US CPI: US will be releasing its CPI data for February, its last inflation data before Federal Reserve’s interest rate decision in March. Previously, CPI data hovered around 3% while Core CPI closed in at around 4%. An unexpected rise in CPI may raise market concern over the possibility of a rate cut as early as June.
- Euro receives additional pressure: Recent dovish comments given by members of ECB, coupled with weak economic data, have raised expectations for an interest rate cut in June. This has placed substantial pressure on the Euro, halting its previous ascension.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator formed a bearish signal at the overbought region, suggesting a reversal for short-term. For the time being, we will need to wait for the pair to close below their previous low before entering the market.
- Moving average support: The 7-day MA (red) line may lend some support for the pair to extend its appreciation. However, we will be required to wait for further price action near the moving average line before making further hypothesis.
1-hour Chart Analysis
- Moving average support: The 7-day MA line (red) remains above the 65-day MA line (black), suggesting ongoing downside pressure from up top. We will be required to wait for further signal later in the day to deduce its expected trend for the near term.
- Top pattern: The pair formed a head and shoulders pattern alongside divergence from Stochastic Oscillator. If the pair closes below its neckline, it will open more room for the pair to descend further.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0945,
- Bullish Scenario: Bullish sentiment prevails above 1.0945, first target 1.0960, second target 1.0980;
- Bearish Outlook: In a bearish scenario below 1.0945, first target 1.0915, second target 1.0900.
Conclusion
To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey.
For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.
Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets.
Stay tuned for more updates and analyses from our team of experts at Ultima Markets.
—–
Legal Documents
Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.
Copyright © 2024 Ultima Markets Ltd. All rights reserved.
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
