Higher Oil price due to unstable oil producing nations in East-North Africa and Saudis is worrying. The budding improvement in the US recovery may be seriously curtailed, and may be wiped out completely. This may result in the introducing of possible QE 3 in the US.Any economic contraction would least favor the U.S. consumer and discourage the Fed from changing its policy mix.
ECB will convene a meeting on March 3, and Officials have sounded increasingly hawkish in recent weeks. That rhetoric is likely to translate into action. It may put the market on notice by acknowledging it no longer forecasts inflation to fall back below the 2% level this year. The talk on the possibility of Interest rise cannot be ignored.
Over the past week alone, the German 2-year yield rose more than 20 bp as the market priced less accommodative conditions
Germany, with France’s support, has put forward a number of proposals to enhance euro zone competitiveness and the POLITICAL implication has a higher effect on Euros Strength which will be visible in the various Euros zone meetings in March.
it is likely Portugal will become the third member to seek an assistance package. The relaxed terms that will be given to Greece and Ireland will be given to Portugal. and recently sentiments towards Spain has improved, All in all, the Sentiments on Euros has vastly improved.
On March 4, if The Non-Farm Payroll data is deteriorating, then it may reflect the poor recovery in the US economies, and the OE3 possibility may be enhanced. And Then we may have a Political Storm over the approaching federal debt ceiling IN THE NEXT UPCOMING WEEKS.
Summing up, The Euros strength is positively biased near term Fundamentally.
Daily EURO/USD Chart
H4 euros/usd chart
From Daily chart above, we envisage that the completion of ab-cd pattern may see the PA near 1.4100-1.4200. The current Bullish momentum is still intact. 1.3700 is a strong support, and the daily chart strong Resistance is near zone 1.3820-1.3860.Breaking this resistance areas may see 1.4100 level and beyond., please observe both the Upper and lower trend lines on the Daily Chart.
On both the H1/H4 charts, bullish momentum is still intact.
Overall trend on the Euros/Usd is Bullish Technically
ECB will convene a meeting on March 3, and Officials have sounded increasingly hawkish in recent weeks. That rhetoric is likely to translate into action. It may put the market on notice by acknowledging it no longer forecasts inflation to fall back below the 2% level this year. The talk on the possibility of Interest rise cannot be ignored.
Over the past week alone, the German 2-year yield rose more than 20 bp as the market priced less accommodative conditions
Germany, with France’s support, has put forward a number of proposals to enhance euro zone competitiveness and the POLITICAL implication has a higher effect on Euros Strength which will be visible in the various Euros zone meetings in March.
it is likely Portugal will become the third member to seek an assistance package. The relaxed terms that will be given to Greece and Ireland will be given to Portugal. and recently sentiments towards Spain has improved, All in all, the Sentiments on Euros has vastly improved.
On March 4, if The Non-Farm Payroll data is deteriorating, then it may reflect the poor recovery in the US economies, and the OE3 possibility may be enhanced. And Then we may have a Political Storm over the approaching federal debt ceiling IN THE NEXT UPCOMING WEEKS.
Summing up, The Euros strength is positively biased near term Fundamentally.
Daily EURO/USD Chart
From Daily chart above, we envisage that the completion of ab-cd pattern may see the PA near 1.4100-1.4200. The current Bullish momentum is still intact. 1.3700 is a strong support, and the daily chart strong Resistance is near zone 1.3820-1.3860.Breaking this resistance areas may see 1.4100 level and beyond., please observe both the Upper and lower trend lines on the Daily Chart.
On both the H1/H4 charts, bullish momentum is still intact.
Overall trend on the Euros/Usd is Bullish Technically
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