EUR is trading up against USD during today's Asian session, updating local highs of March 17. The instrument is supported by the growth of correctional sentiments in USD, which intensified with the adoption of unprecedented incentives for the US economy. Analysts reckon that approved bills will significantly limit the economic damage from the spread of the coronavirus epidemic. Meanwhile, data from the US labor market, released on Thursday, pointed at rapidly growing risks. Initial Jobless Claims for the week ending March 20 sharply increased from 282K to 3283K, which significantly exceeded expectations of 1000K.
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After reaching the historic lows at 1.1500, the GBP/USD pair recovers and trades above 1.2200 amid positive sentiment upon the QE program.
The pair may fall.
On the daily chart, the third wave of the higher level (3) develops, within which the wave 3 of (3) of the lower level forms. Now, the first wave i of 3 has formed, and a local correction has developed as the second wave ii of 3. If the assumption is correct, the pair will fall to the levels of 0.9167–0.9000. In this scenario, critical stop loss level is 0.9908.
The pair is in a correction, a fall is possible.
On the daily chart, a downward trend develops as the wave of the higher level (C), within which the wave 3 of (C) forms. Now, the wave iii of 3 of the lower level has formed, and the development of the local correction iv of 3 is ending. If the assumption is correct, the pair will fall to the levels of 0.5260–0.5050. In this scenario, critical stop loss level is 0.6230.
USD is showing a slight decline against CAD during today's Asian session, trading near 1.4000, the lowest level since March 17. The decline in the instrument proceeds against the background of the approval of new measures to support the American economy.