Will EUR/USD continue to rise or reverse to the downside?

6 Mar

🔔🔔🔔EUR/USD new:

👉The EUR/USD surged 1.75% on Wednesday, approaching the 1.0800 level as market sentiment improved following another shift in U.S. President Donald Trump's trade policy. Trump has once again eased off his previous stance of imposing heavy tariffs on imports, a strategy he had used to retaliate against perceived unfair treatment by other nations.

👉Meanwhile, the European Central Bank (ECB) is expected to cut interest rates by 25 basis points (bps) on Thursday, lowering the Main Refinancing Operations Rate to 2.65% and the Deposit Facility Rate to 2.5%. Despite sluggish and uneven economic growth in the Eurozone during the first quarter, traders have reduced their expectations for further ECB rate cuts in 2025, as inflation remains more persistent than policymakers initially anticipated. The market now predicts fewer than 70 bps in additional rate reductions for the rest of the year.

👉In the U.S., the ADP Employment Change for February showed only 77K new jobs, well below the 140K forecast and March’s 186K figure. However, since a reporting methodology change in 2022, ADP data has had little correlation with Nonfarm Payrolls (NFP), suggesting that the weak figures may not have a significant impact.

Personal opinion:
👉EUR/USD increased by 4% in 3 days so it is dangerous to continue buying

👉Technically, RSI in many time frames is in the extreme zone and there are signs of RSI divergence - This is a forecast for a short-term downtrend.

👉If EUR/USD breaks the trend line and retests this area, consider buying at 1.0800

Analysis:
👉Based on the trend line and RSI combined with resistance - support levels and SMA

Plan:
🔆Price Zone Setup:

👉Sell EUR/USD 1.0800 – 1.0820
❌SL: 1.0860 | ✅TP: 1.0750 – 1.0700 – 1.0600

FM wishes you a successful trading day 💰💰💰

6 Mar

İşlem aktif

Hit +40 pips from 1.0820, congratulations if you followed FM's plan