EURUSD is traded around 1.3800 on the first working day of the week: it has already lost over 0.5%.
Euro’s position is affected by a few factors.
On the weekend Mario Draghi, the president of the European Central Bank, attended a conference at the International Monetary Fund and World Bank Group Spring Meetings. EU deflation, which is mostly caused by the growth of euro’s rate, was among the major topics discussed. ECB can start own program of quantitative easing in order to stimulate the economy. It will be similar to the programs conducted by Federal Reserve, Bank of England and Bank of Japan.
Second factor that applies pressure on EURUSD is political and economic instability in Ukraine. Situation on the Ukrainian southeast escalated during the weekend. An armed conflict took place in the city of Slavyansk. Ukrainian authorities are considering a possibility of the armed conflict resolution.
EURUSD was also supported by the statistics from the USA: retail sales increased by 1.1% in March, while experts were waiting for 0.8% growth. A previous number was revised as well: it grew from 0.3% to 0.7%.
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EURUSD looks locally overbought from the technical point of view. Stochastic indicator will give a signal to buy. Nearest rollback targets are located at 1.38400 and 1.38650.
Click on the picture to see full-size
If bears are able to breach 1.38050, then euro can drop to 1.37700 and 1.37400.
Euro’s position is affected by a few factors.
On the weekend Mario Draghi, the president of the European Central Bank, attended a conference at the International Monetary Fund and World Bank Group Spring Meetings. EU deflation, which is mostly caused by the growth of euro’s rate, was among the major topics discussed. ECB can start own program of quantitative easing in order to stimulate the economy. It will be similar to the programs conducted by Federal Reserve, Bank of England and Bank of Japan.
Second factor that applies pressure on EURUSD is political and economic instability in Ukraine. Situation on the Ukrainian southeast escalated during the weekend. An armed conflict took place in the city of Slavyansk. Ukrainian authorities are considering a possibility of the armed conflict resolution.
EURUSD was also supported by the statistics from the USA: retail sales increased by 1.1% in March, while experts were waiting for 0.8% growth. A previous number was revised as well: it grew from 0.3% to 0.7%.
Click on the picture to see full-size
EURUSD looks locally overbought from the technical point of view. Stochastic indicator will give a signal to buy. Nearest rollback targets are located at 1.38400 and 1.38650.
Click on the picture to see full-size
If bears are able to breach 1.38050, then euro can drop to 1.37700 and 1.37400.
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