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Eurodollar Has Moved Into Correctional Phase

On Friday the euro/dollar rate continued to fall on the American session and reached 1.0461. The rate continued to drop, despite weak American statistical data.

The February US Producer Price Index was -0.5% (forecasted 0.3%, previous -0.8%). The February US Producer Price Index excluding food and energy was -0.5% (forecasted +0.1%, previous -0.1%).

The provisional value for the University of Michigan’s March US Consumer Confidence index is at 91.2 (forecasted 95.5, previous 95.4).

The euro/dollar rate has fallen from the MA of the U1 line to the D3 line. In Asia the euro bounced back to 1.0534. I consider the morning movement when trading opens to be a usual thing, since on Monday I always look at Friday’s movements.

Since the price has returned quickly to 67th degree, I’m waiting for a prolonged growth of the euro to the LB line. Where there’s a deep dipping along the trend the price could jump up to U1. Look at Thursday’s slide. When it reaches the LB line, I’m waiting for the euro to fall to D1. The economic calendar is empty, so nothing will impede the dipping movement.

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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