{"id":102825,"date":"2017-03-03T06:16:46","date_gmt":"2017-03-03T11:16:46","guid":{"rendered":"http:\/\/countingpips.com\/?p=102825"},"modified":"2017-03-03T06:16:46","modified_gmt":"2017-03-03T11:16:46","slug":"eurusd-forex-technical-analysis-expected-fed-tightening-is-bearish-for-euro","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/eurusd-forex-technical-analysis-expected-fed-tightening-is-bearish-for-euro\/","title":{"rendered":"EURUSD: Forex Technical Analysis – Expected Fed tightening is bearish for euro"},"content":{"rendered":"
March 3, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

Expected Fed tightening is bearish for euro<\/strong><\/p>\n

Higher likelihood of a Fed rate hike in March is bearish for euro. Will the euro<\/a> continue the slide against the greenback?<\/p>\n

Raised expectations of a 0.25 percentage point rate hike at mid-March Federal Reserve meeting together with positive US economic data recently have contributed to added dollar strength against major currencies. And Trump\u2019s promise of \u201cmassive\u201d tax cuts for middle class Americans and the pledge to push for $1 trillion dollar infrastructure spending programs also bolstered US economic growth outlook, boosting dollar further. In comparison, euro-zone economies also are on track for continued recovery, activities in the euro-zone\u2019s manufacturing sector expanded in February, though at a slower rate than previously estimated: Manufacturing PMI in euro-zone rose to 55.4 compared with a preliminary estimate of 55.5, Markit reported Wednesday. And German inflation hit 2.2% in February, the highest in more than 4 years. At the same time heightened political uncertainty weighs on euro with results of French presidential elections potentially capable of producing a surprise win for Marine Le Penne, the leader of the French National Front, who has vowed to hold a referendum on leaving the European Union and euro-zone within months of her election. Next major economic data are due on March 7 when EU\u2019s statistics agency Eurostat reports third reading of fourth quarter euro-zone GDP , and the German statistics department Destatis reports January factory orders. Positive surprises will be bullish for euro.<\/p>\n

\"EURUSD\"<\/p>\n

On the daily timeframe EUR\/USD <\/b> has been trading with a negative bias after hitting a 2-month high in end of January. The price is falling after reflecting off the 50-day moving average MA(50).<\/p>\n