Which way will the euro-dollar exchange go? – stockmarket projections. it
After a drop from the annual highs in the 1.10 area down to the 1.06 area, the euro quotations against the dollar attempted a comeback. All of this translated into a very uncertain week which, albeit only slightly, saw the euro prevail against the dollar. Thus, the euro is resisting the pressure from the dollar, but everything will be decided over the next few weeks.
The reasons behind the movements of the euro and the dollar
The dollar fell against the euro on Friday as the market rallied ahead of the long weekend and awaits clues as to how the Federal Reserve intends to continue to address still high inflation.
Several Federal Reserve officials signaled this week that the US central bank will probably have to raise interest rates to bring inflation back to desired levels. This hawkish talk coupled with hotter-than-expected economic data delivered some banks expect three more rate hikes this year.
Goldman Sachs said it expects the Fed to hike rates more three times by a quarter of a percentage point each timeafter this week’s data showed persistent inflation and a resilient labor market.
Once again, therefore, central bank policy will drive the exchange rate between the euro and the dollar.
The euro resists the pressures of the dollar and prepares the recovery: the indications of the graphic analysis
On February 17 the closing of the exchange euro Dollar (FXEURUSD) was at 1.0695, up 0.27% from the previous session. The week ended up 0.20%.
Daily time frame
The Euro’s Recovery Wasn’t Enough to Reverse the Euro’s Uptrend
After another five sessions characterized by ups and downs the most probable scenario could always be the one that sees the prices fluctuate within the trading range of 1.05 -1.10. Only the break of one of these levels could give directionality to the quotations.
Weekly time frame
The averages are still crossed upwards, but the coming weeks could be decisive for understanding which way the euro-dollar exchange will move – proieziondiborsa.it
The margins for maneuver for the medium/long term are increasingly narrowing. In fact, for the second consecutive week, prices leaned on the support offered by the red line (long-term average).
Also in this case, the bulls could gain the upper hand on a weekly close above 1.1.
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