On Monday, there was a significant flight from risk among investors. The S&P 500 stock index fell by 1.76%, oil prices decreased by 2.68%, and the bond market faced turmoil with noticeable declines in yields. Even Bitcoin saw a sharp decline of 8.48%, despite Donald Trump’s announcement about creating a cryptocurrency reserve. Interestingly, European currencies exhibited growth, while the Canadian dollar weakened by 14 pips. We have strong doubts about the sustainability of this rise and anticipate a strengthening of the dollar.
However, our doubts may be reconsidered if the price consolidates above 1.0534. Even in that scenario, it would be wise to avoid drawing conclusions too hastily, especially with U.S. employment data set to be released on Friday. New job creation is expected to rise from 143,000 to 156,000. A breakout above the nearest resistance level may prove to be false. Currently, the euro is fluctuating within a range between 1.0458 and 1.0534, with a higher probability of breaking downward.
On the four-hour chart, the price has consolidated above both indicator lines, and the Marlin oscillator is situated in the growth zone. While it is possible that the upper boundary of the range will be tested, there remains a chance that we could be witnessing a false breakout above the indicator lines. We are awaiting further developments.
The material has been provided by InstaForex Company – www.instaforex.comOn Monday, there was a significant flight from risk among investors. The S&P 500 stock index fell by 1.76%, oil prices decreased by 2.68%, and the bond market faced turmoil with noticeable declines in yields. Even Bitcoin saw a sharp decline of 8.48%, despite Donald Trump’s announcement about creating a cryptocurrency reserve. Interestingly, European currencies exhibited growth, while the Canadian dollar weakened by 14 pips. We have strong doubts about the sustainability of this rise and anticipate a strengthening of the dollar.However, our doubts may be reconsidered if the price consolidates above 1.0534. Even in that scenario, it would be wise to avoid drawing conclusions too hastily, especially with U.S. employment data set to be released on Friday. New job creation is expected to rise from 143,000 to 156,000. A breakout above the nearest resistance level may prove to be false. Currently, the euro is fluctuating within a range between 1.0458 and 1.0534, with a higher probability of breaking downward. On the four-hour chart, the price has consolidated above both indicator lines, and the Marlin oscillator is situated in the growth zone. While it is possible that the upper boundary of the range will be tested, there remains a chance that we could be witnessing a false breakout above the indicator lines. We are awaiting further developments.The material has been provided by InstaForex Company – www.instaforex.com Read More
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