The major currency pair continues falling. On Monday 28 March, EUR/USD is trading at 1.0951.
The currency market is still interested in the “greenback” as a “safe haven” asset – investors need to hedge risks amid both global geopolitical tensions and the US Fed’s policy.
Earlier, Fed Chairman Jerome Powell said that the benchmark interest rate might leap up 50 basis points if the regulator couldn’t handle inflation.
There will be six more Fed meetings this year and the rate might be raised after each of them.
In the H4 chart, having formed a new consolidation range around 1.1010 and broken it to the downside, EUR/USD is expected to test 1.0970 and then complete the correction at 1.0901. Later, the market may form one more ascending wave the target at 1.1133. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is falling below 0 and may soon update the lows.
As we can see in the H1 chart, after breaking 1.0970 to the downside, EUR/USD is expected to test it from below and may later form a new ascending structure with the short-term target at 1.0919. After that, the instrument may grow to re-test 1.0970 from below and then resume trading downwards with the target at 1.0900. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after breaking 20 to the upside, its signal line may continue moving to reach 50. Later, the line may rebound from 50 and start a new decline towards 20.
