Tuesday 14 March EURUSD Day Close Analysis, ahead of the Dutch elections, with market expectations of a wind down by the ECB on the stimulus package, the EUR rose on Monday before sliding back. However, main focus remains on the FOMC meeting as EURO is currently dollar driven. Will EUR bears control the market?
AtoZForex – The Dollar index closed positively for the second day running at 101.64. Will we see further downside for the USD this week? Aside from the FOMC meeting on Wednesday, we have the BoJ, BoE and SNP meetings. Will the markets turn bearish on EUR?
Tuesday 14 March EURUSD Day Close Analysis
The Dutch votes on Wednesday, this will be seen as another test of the anti-immigrant sentiment, observed in the UK and USA. If the PVV Party led by Mr Geert Wilders could send a serious warning to the rest of Europe, should it win sufficient votes. The market turns its focus on the much awaited FED rate rise, expected to be 25bps. However, suggest traders to read this article regarding the FED rate hike by Yagub Rahimov.
14 MARCH EURUSD Day Close Analysis
At the end of the day, EUR closed below Monday close strongly, indicating further possible down side. .
On the Daily chart both the daily 20sma and 100sma are sloping down with the 20sma below the 100sma. Price is below the two moving averages.
Moving Averages – The 20sma is sloping down and 100sma is sloping up. Bothe the 20sma and 100sma are touching and should they cross, a “death cross” will be formed.
MACD –MACD histogram and signal line are below the neutral line
RSI – RSI is below the 50 level.
Key levels – Price continued to fall through the second day this week to close at 1.06086. The dollar continues to strength and we can expect more of the same tomorrow. Bias is on the bearish side, with possibility of a clear break below the 1.0600 level. We cannot rule price rallying towards the 20sma and 100sma before reverting back to its original downward direction.
Fx Pending order: SELL LIMIT @ 1.0623 SL@ 1.0663; TP@ 1.0563
Please use correct risk and money management in line with your account size and draw down plan. These are not recommendations, you must carry out your own due diligence.
Think we missed something? Let us know in the comments section below.