EUR/USD – The Pair May Go Through a Reversal Ahead of Key Data Release

Bearish View

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

Bullish View

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

The EUR/USD pair is most likely to have a bearish breakout, judging from the formation of a bearish flag pattern on the charts. We also saw the RSI moving above the neutral point along with the pair moving in between the 25-period and 50-period MAs. We could see the pair price rising a bit after the concerns surrounding the Banking sector started fading. The pair also touched and moved above key support at 1.0760 which was the highest price on 15th March.

The collapse of several major banks had a major impact on the pair. But this week started on a positive note for the banking sector which favoured the pair. We also saw some action after the Economic numbers from Germany came out to be robust. The consumer Confidence data from US and Legarde’s statement about the future rate policy of ECB will be 2 major events to look forward to for the pair.

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