The EUR/USD pair descended last week despite elevated inflation levels in Europe that should have pushed the pair further to the upside. The reason for the decline was Portugal’s bailout plan and debt woes across the European continent where investors feared that parliament might blocking the aid request from the third nation in European Union to ask for a bailout.
Furthermore, Moody’s Investors Services downgraded Ireland’s credit rating by two-levels, while preserving the outlook “Negative”, therefore, causing the pair to depreciate.
In addition, economists believe that the pair is extremely in overbought areas, adding more pressure on the pair to depreciate.
Major highlights for this week that will place pressure on the EUR/USD pair’s trading:
Monday April 18:
NO data to be released from major economies in the world, therefore volatility is expected throughout the day with bearishness prevailing.
Tuesday April 19:
A busy day for European investors where Manufacturing and Services data from the Euro Zone is scheduled to be released at 08:00 GMT, along with current account data that that will be released at 09:00 GMT, which may force the pair to witness further volatility in trading.
If the manufacturing and services data came better than expected, the pair is expected to rise and trim some of the losses.
Wednesday April 20:
Lack of data from Europe will force investors to shift their attention to the dollar.
Housing data from the U.S. to be released at 14:00 GMT which may show further improvement in the sector that initiated the worst financial crisis in more than 70-years.
Thursday April 21:
Hectic day for investors, with the release of Germany IFO indices at 08:00 GMT, while retail sales data from UK to be released at 08:30 GMT. Both would send the euro to trade higher where expectations signal that confidence in Germany continues on gathering momentum, while retail sales in UK to have drop due to inflation and new VAT rates implemented by the government, accordingly, both would pressure the dollar to fall further and the euro to ascend.
Friday April 22:
The week ends on a short note as the market will be out with central banks holiday on Good Friday.
The EUR/USD pair is expected to witness volatility in trading, especially in the first days of the week. The pair is targeting 1.4500 where if breached, would pave the path for the pair to target 1.4700, nonetheless, a correctional move is expected where if the pair breached 1.4280 and stabilize below it, will force a bearish trend to target levels at 1.4000 then 1.3790.
Originally posted here
Read more about forex technical analysis, forex fundamental analysis and forex news on ForexMansion.com
About ForexMansion.com:
www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.
