EUR/USD – The Consumer Confidence Data Release May Trigger a Reversal

March 28, 2023
Forex News

Long Position

Take Profit: 1.0650
Stop Loss : 1.0850
Timeline: 1-2 days

Short Position

Buy Stop: 1.0800
Take Profit: 1.0900
Stop Loss : 1.0700

The ongoing crisis in the banking sector surely had a fair share in the recent price movements of the pair. Yet this week started on a strong tone for the banking sector which benefited the pair. The strong Economic numbers from Germany also triggered some response from the pair. Two significant events for the pair to anticipate are the US consumer confidence data and Legarde’s remarks about the ECB’s future rate policy.

According to the bearish flag pattern that got formed on the charts, the EUR/USD pair is most likely to experience a bearish breakout. Along with the pair moving between the 25-period and 50-period MAs, the RSI was also moving above the neutral point. We saw the pair price going up a bit only after uncertainty surrounding the Banking sector started mellowing. The pair also made contact with and moved above key support at 1.0740, which was the highest price level March 15.

Author Amsterdam