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EUR/USD Daily Price Forecast: ECB Takes Dovish Economic Outlook

Nikhil Khandelwal

EUR/USD continued the rally to the second day following the robust gains of Wednesday. The pair faced few drops during the day with recent Brexit updates. It had been recently trading at 1.1392. The EUR/USD pair is showing a sign of breaking upside resistance levels and reverting upwards by the end of the day.  

Consumer Confidence Index

This index which computes the level of consumer confidence in Eurozone’s economic activity is about to release the index for March will be released at 15:00 GMT. It is been published by the European Commission . The Consumer Confidence Index was recorded as -7.4 in the month of February. Analysts expect a slowdown in the index for this month. And the consensus estimate it to be coming around at -7.1 this time. Any surprise in the Consumer Confidence Index will be having a positive or negative impact on the trend of the EUR.

Theresa May Running Out Of Time

President of EU, Donald Tusk approved for a short Brexit extension on terms if the UK House of Commons approved the Brexit deal. European Parliament Brexit coordinator Guy Verhofstadt strictly mentioned that the Brexit should not extend beyond May 23 as it may affect the Bloc’s legislative elections scheduled for May 23-26. May had still urged for an extension until June 30. This will be discussed among the EU leaders in today’s summit in Brussel.   

EU Takes Dovish Economic Outlook

The European Central Bank (ECB) in today’s economic bulletin highlighted that the bank will work on lifting the inflation levels to the attainable level. The Europan Union has taken a dovish stance on the growth outlook. The report mentioned of having increased inflationary pressure in the Eurozone region. This prevents the bank from keeping the interest rates unchanged.

Swiss National Bank had also considered a dovish stance on its inflation outlook. The Bank added today that it expects a global slowdown in the near term. With this take of the bank, Franc weighed lower to Euro.  

Technical Forecast

EURUSD 60 Min 21 March 2019 At the time of writing this article, EUR/USD had been trading at 1.13526 level. The 50-day simple moving average (SMA), 100-day SMA and 200-day SMA lie below the current trading level. This generates some bullish signals reverted the pair upwards. If the pair follows uptrend after a mere correction from 1.13526, then two major resistance levels, particularly at 1.15080 and 1.15535, respectively await the pair on the upside.  

This article was originally posted on FX Empire