In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for 7th March 2024. 

Key Takeaways 

• Powell’s testimony is nothing new: During testimony, Powell commented that an interest rate cut will be appropriate later this year. Nonetheless, his remarks were similar to the statement made during January’s policy meeting, with no change in context or tone of delivery.  
• ADP hints at slowing inflation: US ADP Employment held steady at 140K for February while annual wages rose 5.1%. ADP said that this is the lowest increment since August 2021, indicating receding inflationary pressures.  
• ECB will announce interest rate decision: The market is expecting ECB to keep interest rates unchanged with an overall focus cast upon latest economic forecast and further signal from Christine Lagarde with regards to forward guidance.  

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: Following two days of oscillation, both signal line formed bullish signal in the overbought threshold, suggesting possible upper hand in short-term while extension may be possible to long-term.  
• Fibonacci extension level: Following a successful break above recent resistance, price action shows a clear bullish signal, with the current target focused upon the next Fibonacci extension level as indicated in the chart.  

1-hour Chart Analysis 

• Stochastic Oscillator: The indicator forms bearish signal in the overbought region, which may suggest some weakness ahead during Asian trading session. We will wait for more signal throughout the day thereafter to see if bullish opportunities emerge again.  
• Alternative trend line: Following previous breakout from the trendline and a pullback, the pair may be blocked in the lower boundaries that could lend some support for further upside. Pay attention to the price action near the trendline for further market signal and trend direction.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0875, 
• Bullish Scenario: Bullish sentiment prevails above 1.0875, first target 1.0915, second target 1.0930; 
• Bearish Outlook: In a bearish scenario below 1.0875, first target 1.0860, second target 1.0840. 

Conclusion 

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For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

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