In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for 18th April 2024.
Key Takeaways
- Federal Reserve Beige Book: The U.S. economy has expanded slightly, and it has become significantly more difficult for companies to pass on rising costs. While wage pressure has eased, general public remains cautiously optimistic with regards to the economy.
- Cleveland Fed President Mester: In a speech, Mester signalled that If inflation does not continue to fall to 2%, they may keep interest rates at current levels for longer. “At some point we will start to loosen policy. There is no need to rush to relax policies.” added Mester.
- ECB Governing Council member Nagel: The possibility of an interest rate cut in June has increased. ECB Governing Council member Centeno said interest rates may be cut “several times” this year. European Central Bank President Lagarde added that “We are watching Euro’s exchange rates very carefully.”
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator begins to form bullish signal, a hindsight to possible mid-term rebound fr or the pair. It is suggested to wait for more price action before entering the market.
- Support and resistance: The pair halts it descend after being supported by 78.6% level of Fibonacci retracement. With a strong upward trend remaining in place, it implies possible extension towards the upside for periods to come.
1-hour Chart Analysis
- Stochastic oscillator: The indicator forms bearish signal in the overbought region, which may lead to short-term weakness thereafter. However, due to contradicting signal from higher timeframe, tits weakness may be short-lived.
- Bottom support: A strong support can be seen from below around the previous neckline. For the time being, weakness may be halted by the said neckline, which in return could lead to a strong rebound thereafter.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0645,
- Bullish Scenario: Bullish sentiment prevails above 1.0645, first target 1.0685, second target 1.0700;
- Bearish Outlook: In a bearish scenario below 1.0645, first target 1.0625, second target 1.0605.
Conclusion
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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.
