Euro vs. Dollar – Who Will Reign?
Published On: 25 March 2024, 11:50 AM | Tan Peng Chien, DealerKey Entry Price Pivot(s):
- 1. 09225
- Long at 1.07824
- Stop Loss at 1.07547
- Take Profit at 1.0925
- Short at 1.09168
- Stop Loss at 1.09525
- Take Profit at 1.07749
- Following the release of the FOMC statement and the Federal Reserve’s interest rate decision last week, stagnant rates led to a weakening of the greenback against the Euro upon the delivery of economic news.
- Despite this, the EURUSD pair did not establish a higher high, opting instead to fill a price imbalance before the U.S. Dollar regained momentum, ending the week with a lower low.
- Given the current price position above a support level, it’s plausible to anticipate multiple buy stops beyond the level of 1.0788. With ample liquidity in place, a potential trading strategy could involve waiting for the price to breach the support level and then seeking long positions on the pair around the price of 1.07824, with the various price imbalances above serving as profit-taking levels.
- Alternatively, a more conservative approach would involve monitoring this week’s price movements and observing whether the EURUSD forms a higher high above the level of 1.09400. Failure to do so could prompt traders to consider short positions around the level of 1.09168, anticipating a continuation of the pair’s downward trend.