The EURUSD pair has formed a swing high around the main resistance level at 1.09000, which confirms the possibility of a price retracement to test the 1.06000 demand zone.
As we head into the last week of the trading month of March, the market is expected to experience some volatility due to various high-impact news events.
Overview of the Week's High-Impact News Events
Here's a look at the high-impact news events that are expected to affect the EURUSD pair this week:
- Monday, March 27: German ifo Business Climate at 9:00 am (EUR)
- Tuesday, March 28: CB Consumer Confidence and Richmond Manufacturing Index at 3:00 pm (USD)
- Wednesday, March 29: Pending Home Sales m/m at 3:00 pm (USD)
- Thursday, March 30: German Prelim CPI m/m and Spanish Flash CPI y/y at 8:00 am (EUR), Final GDP q/q, Unemployment Claims, and Final GDP Price Index q/q at 1:30 pm (USD), and Treasury Sec Yellen Speaks at 8:45 pm (USD)
- Friday, March 31: ECB President Lagarde Speaks (tentative) (EUR), CPI Flash Estimate y/y and Core CPI Flash Estimate y/y at 10:00 am (EUR), Core PCE Price Index m/m at 1:30 pm (USD), Chicago PMI at 2:45 pm (USD), and Revised UoM Consumer Sentiment at 3:00 pm (USD)
Technical Analysis of the EURUSD Pair
Looking at the technical analysis of the EURUSD pair, we can see that the price has formed a swing high around the main resistance level at 1.09000.
This confirms the possibility of a price retracement to test the 1.06000 demand zone. The RSI (Relative Strength Index) is currently above the 50 level, which indicates that the bulls have the upper hand.
However, we should still be cautious as the RSI could still reverse and move towards the oversold zone.
On the daily chart, the price has broken above the 200-day SMA (Simple Moving Average) and is currently trading above it.
This indicates that the overall trend is bullish. However, we should still keep an eye on the 50-day SMA as it could act as a support level if the price retraces.
Looking at the EURUSD H1 chart, we can see that there are reversal signals now. The price has formed a double top pattern and is currently testing the neckline.
If the neckline is broken, we could see a price retracement towards the 1.06000 demand zone.
The MACD (Moving Average Convergence Divergence) is currently showing a bearish divergence, which confirms the possibility of a price retracement.
What to Expect This Week
With the high-impact news events scheduled for this week, we can expect some volatility in the EURUSD pair.
The German ifo Business Climate on Monday could affect the EURUSD pair as it measures the business sentiment in Germany, which is the largest economy in the Eurozone.
On Tuesday, the CB Consumer Confidence and Richmond Manufacturing Index could affect the USD, which could have an impact on the EURUSD pair.
On Wednesday, the Pending Home Sales m/m could affect the USD as it measures the change in the number of homes under contract to be sold but still awaiting the closing transaction.
On Thursday, the German Prelim CPI m/m and Spanish Flash CPI y/y could affect the EURUSD pair as they measure the changes in the prices of goods and services in Germany and Spain, respectively.
Moreover, the Final GDP q/q, Unemployment Claims, and Final GDP Price Index q/q could also affect the USD and therefore, the EURUSD pair on Thursday.
Furthermore, on Friday, the market will be eagerly awaiting the speeches by ECB President Lagarde and Treasury Sec Yellen, which could give insights into their monetary policy stance.
Additionally, the CPI Flash Estimate y/y and Core CPI Flash Estimate y/y could affect the EURUSD pair as they measure the changes in the prices of goods and services in the Eurozone.
Lastly, the Core PCE Price Index m/m, Chicago PMI, and Revised UoM Consumer Sentiment could affect the USD and therefore, the EURUSD pair on Friday.
Overall, traders and investors should keep an eye on these news events and their potential impact on the EURUSD pair.
Conclusion
In conclusion, the EURUSD pair formed a swing high around the main resistance level at 1.09000, confirming the possibility of a price retracement to test the 1.06000 demand zone.
Technical analysis of the EURUSD pair on the H1 chart also shows reversal signals.
Traders and investors should closely monitor the price action of the EURUSD pair and take note of the high-impact news events scheduled for this week, as they could potentially affect the pair's direction.
By staying informed and being prepared for potential market-moving events, traders and investors can make more informed decisions and manage their risks effectively.
