EURUSD: Euro Boosted By Crosses Ahead Of European Open

The EURUSD paid closed higher on Wednesday, March 31, up 0.13% to 1.1730. The price action climbed to 1.1760 during the North American session, but buyers were forced to retreat to 1.1719 after French President Emmanuel Macron announced the imposition of a four-week nationwide lockdown in the country due to the spread of the UK coronavirus variant.

Todays macro agenda (GMT+3)

  • Eurozone: from 10:30 to 11:30 PMIs in France, Germany, the Eurozone and the UK (March)
  • 13:00: OPEC+ meeting
  • 15:30 Canada: building permits (February); US: primary initial jobless claims
  • 17:00 US: ISM manufacturing index (March), construction spending (February)

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Current outlook

Major currencies have been trading in the red this morning. The steepest losses are seen in the Australian dollar (-0.65%), and this move precipitated the decline in other pairs. Aussie selling may have picked up on conflicting macro releases out of Australia, as well as a drop in China’s Caixin manufacturing for March.

At the time of writing, the euro was trading at 1.1724. Price action is near Wednesday’s close. The EURGBP cross opened with an upward correction despite the new lockdown introduced in France. The euro has drawn support from this cross, but sentiment for the euro bulls will improve when the cross pair breaks out of the 0.8540 level.

Monthly and quarterly candles were closed. Portfolio adjustments are in progress ahead of Good Friday. As the euro continues to strengthen against the pound, the key pair with the dollar is expected to recover to 1.1762, or to 1.1810 under an optimistic scenario.

It should be borne in mind that this trend looks bearish. Market sentiment could shift quickly during the day. The target level for sellers is 1.1685.

Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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