EUR/USD – The Concerns Related to Fed Reserve Pushes the Pair Upwards

My FX List
March 6, 2023
Concerns Related to Fed Reserve Pushes the Pair Upwards

Short Position

Take Profit: 1.0575
Stop Loss: 1.0680
Timeline: 1-2 days

Long Position

Buy stop: 1.0650
Take Profit: 1.0750
Stop Loss: 1.0550

The EUR/USD pair was moving upward on Monday morning. The price even crossed the important resistance level 1.0612. The Relative Strength Index is above the neutral point whereas MACD still remains there. A significant move above the upper side of the descending channel pattern was spotted and the pair also crossed the 25-day and 50-day Moving Averages. Something we can expect at this point is a retest to 1.0575 support level which may happen on Tuesday.

As of now, there are some concerns about Fed policy which will be clarified with the Fed Chair, Powell’s upcoming statements. ECB is also about to release some statements which are also relevant for the pair price. We can surely expect a further tightening of monetary policy from both sides and especially the US is most likely to proceed with more rate hikes in future.

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