{"id":144073,"date":"2019-03-21T07:40:51","date_gmt":"2019-03-21T11:40:51","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=144073"},"modified":"2019-03-21T06:52:48","modified_gmt":"2019-03-21T10:52:48","slug":"eurusd-bulls-trying-to-defend-the-territory-gained","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/03\/eurusd-bulls-trying-to-defend-the-territory-gained\/","title":{"rendered":"EURUSD: bulls trying to defend the territory gained"},"content":{"rendered":"<div id=\"inves-2719824935\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">March 21, 2019<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Matthew Anthony, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong><em>Previous:<\/em><\/strong><\/p>\n<p>On Wednesday the 20<sup>th<\/sup> of March, the bulls managed to close the day above 1.14. The highest point recorded during the day\u2019s trading was 1.1448. The dollar collapsed during the US session following confirmation of the US Fed\u2019s decision and the publication of the subsequent monetary policy statement.<\/p>\n<p>All the Fed\u2019s actions prompted speculators to short the dollar. After the two-day meeting, the Federal Reserve decided to maintain the key rate within the range of 2.25% to 2.5%. The accompanying monetary policy statement was more dovish than markets expected. Economic growth forecasts for 2019 and 2020 were downgraded. Expected growth this year was revised downwards from 2.3% to 2.1%, and next year from 2% to 1.9%.<\/p>\n<p>The dollar\u2019s collapse was caused by the Fed\u2019s dot plots, which depict the opinions of FOMC members with regard to future interest rate hikes. They currently show that the federal funds rate will remain at its current level throughout the year, and be raised once in 2020. Moreover, the central bank plans to end its balance sheet reduction in September this year.<\/p>\n<p>US10Y bond yields have dropped by 1.95% to 2.97%. All major currencies gained round against the dollar on the back of this.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p><div id=\"inves-1658750464\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<ul class=\"list list_type_disc\">\n<li>11:30 Switzerland: SNB interest rate decision and monetary policy assessment.<\/li>\n<li>12:00 Eurozone: ECB economic bulletin.<\/li>\n<li>12:30 UK: retail sales (Feb), public sector net borrowing (Feb).<\/li>\n<li>15:00 UK: BoE interest rare decision, BoE asset purchase facility.<\/li>\n<li>15:30 Canada: wholesale sales (Jan).<\/li>\n<li>15:30 US: Philadelphia Fed manufacturing survey (Mar), initial jobless claims (15 Mar).<\/li>\n<li>18:00 Eurozone: consumer confidence (Mar).<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/storage\/inline-images\/eur_210319_0.png\" alt=\"EURUSD H1\" data-align=\"center\" data-entity-type=\"file\" data-entity-uuid=\"59dbca01-9138-48dc-91e4-8c7cf41d538c\" \/><\/p>\n<p><strong><em>Current situation:<\/em><\/strong><\/p>\n<p>The European session saw another false breakout of the trend line. The euro descended to 1.1336 before making a sharp upwards reversal. The pair missed the lower target of 1.1325 by 11 pips. The EURUSD pair then went on to hit a new high on the back of the pound\u2019s collapse and the resulting rise of the EURGBP cross. The bulls were unable to break the resistance at 1.1360 until the Fed\u2019s rate decision was announced.<\/p>\n<p>The Fed surprised markets with its dovish outlook. The dollar went into serious decline after it became clear that there wouldn\u2019t be any rate hikes this year and the Fed downgraded their GDP forecasts. The regulator plans to end their balance sheet reduction in September. Market sentiment towards the dollar has taken a turn for the worse.<\/p>\n<p>On the chart, I\u2019ve highlighted the 50% level of the big candlestick. 1.1403 is a key level. If we drop below it, the bears will start pushing towards the 45<sup>th<\/sup> degree. I\u2019ve mapped out a slow version of the downwards trajectory with an arc.<\/p>\n<p>Considering that a lot of currencies and euro crosses are trading up, we\u2019re likely to see a rebound via a double bottom. If pressure on the dollar increases, the euro bulls could break through to 1.1480. If we make it to the U3 line, rather than a downwards rebound, I think we can expect the pair to move in a saw tooth formation below the line.<\/p>\n<p>The monthly candlestick is currently giving out a buy signal. It\u2019s going to close in 6 days. My target for the beginning of June remains at 1.23.<\/p>\n<p>Today\u2019s central focus is the Bank of England\u2019s meeting.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: bulls trying to defend the territory gained<\/a>&#8220;<\/div>\n<div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Matthew Anthony, Alpari Previous: On Wednesday the 20th of March, the bulls managed to close the day above 1.14. The highest point recorded during the day\u2019s trading was 1.1448. The dollar collapsed during the US session following confirmation of the US Fed\u2019s decision and the publication of the subsequent monetary policy statement. All the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-144073","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=144073"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144073\/revisions"}],"predecessor-version":[{"id":144074,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144073\/revisions\/144074"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=144073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=144073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=144073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}