• About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting
Thursday, June 8, 2023
United for Profit
  • Personal Finance
  • Cryptocurrency
  • Strategy
  • Business
  • Retirement
  • Analysis
No Result
View All Result
  • Personal Finance
  • Cryptocurrency
  • Strategy
  • Business
  • Retirement
  • Analysis
No Result
View All Result
United for Profit
No Result
View All Result
Home Retirement

Euro Forecast Remains Bearish: Germany Enters Recession

by
May 25, 2023
in Retirement
0
Euro Forecast Remains Bearish: Germany Enters Recession
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Euro Forecast Remains Bearish: Germany Enters Recession

The euro experienced a decline on Thursday as Germany, the largest economy in Europe, officially entered a recession. This development has added to the negative outlook for the euro. The EUR/USD pair dropped to a two-month low, reflecting the increasing influence of bearish sentiments in the market. The euro forecast continues to suggest a bearish outlook for the currency.

The Federal Reserve attributes the strengthening of the dollar to expectations that would maintain a hawkish stance. Simultaneously, the US debt ceiling remains under lingering uncertainty. These factors, combined with reports of Germany’s recession in the first quarter of 2023, further weighed down the single currency, creating a negative outlook.

Factors Contributing to Bearish Momentum

Technical indicators reveal the emergence of fresh bearish momentum, with a breakthrough below the pivotal Fibo support level at 0.7374. The daily close below this level confirms the bearish signal and paves the way for potential targets at 1.0700/1.0652, which encompasses the psychological level and the 76.4% Fibonacci retracement.

Bearish signals are under reinforcement by rising bearish momentum. Besides, the presence of a thickening daily cloud is above the price. However, these signals may be offset to some extent by conflicting indications from deeply oversold stochastic indicators.

Although consolidation periods may offer temporary respite, the overall picture remains bearish. Fundamentally, the euro faced negative headwinds. Therefore, any upward movements might be limited below the key resistance zone at 1.0800. That is definitely encompassing the daily cloud top and affecting the 10-day moving average fall.

Asian Market: Potential Targets and Key Levels to Watch

According to SocGen, a sharp decline in EUR/USD could occur if the 1.07 support level. Meanwhile, USD/JPY could experience an upward spike if it breaks the 140 level. Experts suggest that shorting EUR/JPY appears to be a more favorable trade compared to speculating on potential reversals in other currency pairs.

The ongoing concerns about Chinese data and the rising USD/CNH exchange rate continue to exert pressure on the Canadian dollar (CAD), Australian dollar (AUD), and New Zealand dollar (NZD). Among these, CAD is the only currency that may have some slight buying potential.

It is important to note that the risk of the United States defaulting on its debt is not currently a realistic scenario. The global concern surrounding the US debt negotiations has put pressure on international stock markets while paradoxically strengthening the US dollar as it maintains its status as a safe-haven currency.

Cautious Approach and Euro Forecast

Considering the geopolitical landscape, it is highly unlikely that the US would face bankruptcy while Russia remains relatively stable.  After imposing severe sanctions on the Russian economy, the ongoing conflicts still had no power over the US economy.

Market behavior aligns with these thoughts, as the US dollar maintains a mild upward momentum. The EUR/USD pair is currently down over 400 basis points from its recent high of 1.11. The decline indicates that both the euro and the US dollar may exhibit signs of fatigue. This observation supports the Euro forecast, suggesting a cautious approach and focusing on positions that favor the European currency. With the ongoing market dynamics and the Euro’s strong market loyalty, it is important to assess the potential for a shift in market sentiment and adjust strategies accordingly.

The post Euro Forecast Remains Bearish: Germany Enters Recession appeared first on FinanceBrokerage.

Previous Post

Influence of Technological Factors on Economic Development

Next Post

Dollar to Yen Retreats from YTD High

Next Post
Dollar to Yen Retreats from YTD High

Dollar to Yen Retreats from YTD High

Exchange Rate

Exchange Rate USD: Thu, 8 Jun.

Australian Bank Takes Stance Against Payments To Select Crypto Exchanges
Cryptocurrency

Australian Bank Takes Stance Against Payments To Select Crypto Exchanges

by
June 8, 2023
0

Due to concerns over the risk of scams, Australia’s largest bank, Commonwealth Banks (CBA), has recently announced the temporary delay...

Read more
Apple’s Stock Target: Bullish Analysis on Growth Prospects

Apple’s Stock Target: Bullish Analysis on Growth Prospects

June 8, 2023
“XRP Very Important,” Top Analyst Predicts Which Tokens Could Profit From The SEC War

“XRP Very Important,” Top Analyst Predicts Which Tokens Could Profit From The SEC War

June 8, 2023
Forex Market Analysis for Today: USD/CAD & More

Forex Market Analysis for Today: USD/CAD & More

June 8, 2023
Solana and Cardano: Cardano falls below the 0.3400 level

Solana and Cardano: Cardano falls below the 0.3400 level

June 8, 2023
SafeMoon and Litecoin: Litecoin recovered to the 91.00 level

SafeMoon and Litecoin: Litecoin recovered to the 91.00 level

June 8, 2023
ApeCoin and Akita Inu: ApeCoin pulls back below 3,000 again

ApeCoin and Akita Inu: ApeCoin pulls back below 3,000 again

June 8, 2023
Dogecoin and Shiba Inu: Dogecoin is hovering around 0.07000

Dogecoin and Shiba Inu: Dogecoin is hovering around 0.07000

June 8, 2023
List of Unauthorized Forex Trading Platforms

List of Unauthorized Forex Trading Platforms

June 8, 2023
Bitcoin and Ethereum: Bitcoin rises to $26500 resistance

Bitcoin and Ethereum: Bitcoin rises to $26500 resistance

June 8, 2023
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting

Copyright © 2022 UnitedForProfit. All Rights Reserved.

Disclaimer: UnitedForProfit.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Privacy Policy & Important Disclaimer
  • Terms & Conditions
  • Thank You

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.