Skip to main content

EURUSD – Weekly Outlook for 10th March 2022

EURUSD Forecast for Forex

Introduction

The EURUSD currency pair saw a slowing of volatility on major Forex as the trading week resumes as the current war between Ukraine and Russia escalates and major stocks have declined since the Russian army seized one of Europe’s biggest nuclear powers and the demand for the safe-haven asset is high among investors. 

EURO and US News

Main Refinancing Rate   

The members of the ECB Executive Board and some governors from the Euro area central banks will be voting for the setting of interest rate via rotation, however, if there is a split during the vote it will not be revealed to the public.  The interest rate is the refinancing operation that provides liquidity to the banks.

The Refi rate is usually priced into the market before the ECB press conference takes the show away from the forex platform 45 minutes later. When the reports show that the outcome is higher than the forecast it is good for the economy but if the actual is lower than the forecast it is not suitable for the currency.

 The forecast is 0.00% while the previous is 0.00%.

USD CPI m/m

The Consumer Price Index is a report on consumer behavior towards goods and services. The CPI measures the changes in prices in services and goods purchased by consumers during a certain period. 

The consumer price also accounts for the overall inflation, and the central banks pay attention to it is because if the prices of commodities continue to raise the interest rate will be increased as a measure to contain inflation.

After 16 days the data is released by the Bureau of Labor Statistics on the CPI.

The Forecast is 0.8% while the Previous data was 0.6%.

EURUSD Technical Analysis

Weekly Chart Bearish Swing

EURUSD weekly chart - 10th March 2022

Weekly Resistance Level: 1.15000, 1.11800, 1.18000

Weekly Support Level: 1.11800, 1.06310

The Indian forex witnessed a massive movement at the close of last week’s trading, the EURUSD pair had about 3.43% deep on the currency looking at the forex platform. The market broke out below the psychological support of 1.11800 which had rejected the price a week earlier.  If the factors affecting the EURUSD pair should persist, the price may not retest the previous support zones before it drops down to the 1.07100 zones.

The ECB members will be meeting in a few days from now and they have a lot on their hands with the current crisis around Euro and Russia border. Their decision will determine the next step for the major currency. If the demand for the US dollar is on the rise the Euro currency will keep losing its strength on the forex platform as traders and investors are seeking safe-haven assets.  

Daily Chart Projections: Bearish.

EURUSD daily chart - 10th March 2022

Daily resistance Levels 1.14000, 1.11235

Daily Support Levels 1.07204, 1.08060

The price of the EURUSD pair broke out below the 1.11235 zones during last weeks’ trading activity and the price has been dropping for 4 trading days. The broken support zone will automatically become a resistance zone soon as the price retest the zone.

Due to the volume of demand for the US dollar, we can see that the Euro pairs are weak on the forex platform because of the Russian and Ukraine crisis. If the tension continues to increase, we shall see the EURUSD pair going further down as all indicators show that Indian brokers, investors, and other institutions are moving their investments into the US dollar because of the abundant liquidity. 

H4 Intraday Chart Overview, 

H4 Hour Resistance levels 1.1445, 1.109460.

4 Hour Support levels 1.07000, 1.08000

The NFP outcome favored the dollar and the number of those seeking employment was low as the EURUSD pair continued the bearish trend. The momentum is strong in favor of the US dollar as the tension between Russia and Ukraine continues to disrupt the global market.

The current support level of 1.0800 may hold if the currency pair can close above the 1.09460 zones which will likely take the price to the 1.11445 levels. A close below the support zone will expose the pair to a lower zone of 1.07000.

 Conclusion and Weekly Price Objectives

Indian forex traders and other investors will be searching for clues concerning the monetary policy the ECB members are bringing to the table. Some market analysts expect a hawkish approach from the group.

The EURUSD pair will likely consolidate around 1.0700 before we get a definite action for reversal of price as we can see some signs of exhaustion on the chart and lower volatility.



No Comments found


Got a Question or a Review about this broker? Share it with us!

Your email address will not be published. Required fields are marked *