Forecast for EUR/USD on March 21, 2019


The results of yesterday's Fed meeting disrupted plans for market participants who are already prepared to sell the euro. FOMC members have specifically expressed their plans for the rates - an increase is not expected for this year and there can be only one increase in 2020, by 0.25%. The Fed also decided to complete the balance sheet reduction by October of this year, which is also a "soft" measure of monetary policy. As a result, the euro grew by 73 points, bringing the technical picture in a highly unstable state.


To resume the euro's decline, the price must return to the accumulation range, from which growth occurred (1.1324/60), but a more accurate signal can be obtained after the price leaves the four-hour MACD line. The marlin oscillator, being a leading indicator on H4, does not provide any clarity; the existing hint of divergence can be easily modified into a local discharge with subsequent growth. It remains to wait until the market itself shows its intention through signal levels.


The material has been provided by InstaForex Company -