EURUSD Forecast For the Week March 19-23
As we mentioned in our Gold forecast, FED Day arrived.
” Market players agree that interest rates are moving higher this week. Markets see a 25-basis-point hike as all but guaranteed. Market players are anxious to see how hawkish the central bank will be.
And the general opinion is: “Inflation is running high enough that the Fed will not be dovish. It’s now a question of how hawkish they will be”
The tone of FED statement will be the leading factor in the direction of the EURUSD”
We follow up our trading idea of EURUSD
Our third target was 1.22500, however, price tested 1.22600 and pulled back tp 1.22800.
1.23300 remains as the main resistance and the price will remain under bearish pressure as long as it stays below it.
Let us take a look at the bigger picture first.
- The main trend is bullish. Price is above all main EMAs – EMA 50,100 and 200-
- We have fractal SHS pattern. The neckline is 1.20900. This was the level where the pair broke the triangle and made 350 pips bullish move. The main trend would not be changed as long as it remains above 1.20900.
- 1.22600 EMA 50 support of the Daily Chart. Breakout of this support will trigger the bearish move. Target will be 1.22000 MM 4/8 Major Support.
The overview of the H4 chart for day trading:
- Golden Cross is on the way. Bears are much eager.
- 1.23300 MM 4/8 Major Resistance. Bearish Pressure will continue below 1.23300. It is the pullback level to use as selling opportunity.
- Close above 1.23650 will confirm the bullish trend.
- Our take profit level is 1.22000. And we will look for a retracement between 1.22000 – 1.21860 based on Bullish Bat pattern.
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.