With the upcoming Easter weekend, many traders expect the markets would remain stable at least for a few days. However, as we wrote before, you should still keep an eye on the EUR/USD, because interesting things are happening there.
Since the Federal Reserve has been taking a more dovish approach than expected, the EUR/USD rapidly moved up last week, but has since gone back almost to its starting point. It began forming a falling wedge pattern on the 4-hour chart, as Investing.com’s Matthew Weller noted.
Currently we can see a different trend pattern on the 4-hour chart, which is especially important since we won’t have news about these currencies until next week. The EUR/USD exchange rate has been moving within a bearish channel for some time now and this likely won’t change in the upcoming days. This is further confirmed by the Relative Strength Index indicator.
Here’s the moment of peculiar interest to our traders – how long will the bearish trend go on? What levels is it going to reach? Knowing perfectly well that the dollar is unlikely to go up due to the Fed’s reluctance to increase interest rates, the Euro has an actual chance to pick itself up. That’s why it’s possible to see the bear turn into a bull, at least until more information comes from the US regarding its currency.
If you’re interested in trading this pair, be on your guard – these are the times when any piece of news, no matter how insignificant it might seem compared to the big picture, may have a solid impact in the short term.
Chart by Investing.com: