EURUSD makes fresh 14-month highs today amid speculation that Fed will proceed with another emergency interest rate cut in the March policy meeting. Fed moved with an emergency 50bps cut last week, and markets are pricing in almost 75 basis points of further easing. The US yield curve drops below 1%, while the US 30y yields plunged below 1% for the first time in history.
Traders will closely watch the monetary policy decision by the ECB on March 12. Most likely, the ECB might proceed with monetary easing, and this is likely to put pressure on the euro.
On the economic data front, Germany Industrial Production came in at 3% above forecasts of 1.5% in January and above the December reading of -3.5%. The Germany Exports came in at 0% topping the estimates of -0.2% in January, while the Imports came in at 0.5% also above expectations of -0.2%.
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EURUSD Technical Outlook
EURUSD is 1.59% higher at 1.1466 at fresh 14-month highs as the breakout accelerates after the pair broke above the descending trendline that started on May 2018. The technical outlook is bullish, and higher levels might be on the cards.
On the upside, the immediate resistance for the pair stands at 1.1495 the daily top. A break above might target the next resistance level at 1.1515 the high from December 31, 2019. More offers would be met at 1.1542 the high from January 11, 2019.
On the downside, the initial support for the pair stands at 1.1335 the daily low. If the EURUSD pair breaks below the next target would be the 1.1210 the low from Friday’s trading session, next support will be met at 1.1120 the low from March 5, trading session.