EUR/USD has witnessed a minute bounce after nosediving to near 1.0700.The ECB will move to rate hike measures after concluding the APP.The greenback will remain strengthened on a prolonged liquidity shrinking plan.
The EUR/USD pair is displaying a minor bounce after dropping to near the psychological support of 1.0700 in the Asian session. The pair has been plunging from a few trading sessions amid renewed fears of stagflation in the eurozone and a stronger greenback on progressive odds of a jumbo rate hike by the Federal Reserve (Fed) in May.
The insights from the testimony of European Central Bank (ECB) President Christine Lagarde have cleared that a rate hike from the ECB is a little far still now. The ECB official stated that the conclusion of the Asset Purchase Program (APP) will be followed by a rate hike. The APP will conclude in the third quarter of this year, therefore investors should brace for a rate hike by the end of the year. Apart from that, ECB sees a decent slash in the growth forecasts along with soaring inflation this year. The Ukraine crisis has complicated the situation for the ECB and it is unable to follow the footprints of other Western leaders.
AUD/USD: Bulls stepping in and eye a significant correction.AUD/USD is correcting the heavy losses from the start of this week. Aussie is stalling on the offer and the bulls eye the Fibonacci scale. The price has fallen into a demand area on the daily chart where a phase of accumulation could playout for the days ahead.
USD/JPY rebounds to 128.00 amid improving mood.USD/JPY is on the back foot amid USD retreat, upbeat Japanese data. Improving mood is aiding the recovery in the pair ahead of US data. Bull flag is in the making on the daily sticks, with Thursday’s BOJ awaited.
Gold bulls are moving in, but the force is strong with the bears.Gold Price is rising in Tokyo as the US dollar loses some of its momentum following a sharp advance at the start of the week. The gold price remains, however, near a four-week low that was printed overnight.
Bitcoin price looks like a scalpers market; here are the levels to be aware of.Bitcoin price could go for a countertrend rally. The risky countertrend move could unfold impulsive as wave C of B. Bitcoin price could continue to fake out traders as Smart Money has completed a successful liquidity hunt two Mondays in a row.