EUR/USD And GBP/USD Bullish Breakouts
Traders stuck to their bets for a Federal Reserve rate hike in March after the U.S. consumer price index climbed at the fastest pace since 1982, a historically extreme reading, which was in line with forecasts. The U.S. dollar however declined instead of rising since most of the Fed’s hawkish view was already priced in which can be clearly seen in the greenback’s trajectory over the past year.
Bullish breakouts in both EUR/USD and GBP/USD
EUR/USD
The euro broke above 1.1420 and rose to a fresh high at 1.1452 amid the prevailing ‘risk-on’ sentiment. However, the bullish move will not help the still overbought situation in this pair, so traders should brace for near-term corrections. The former resistance at 1.14 could now possibly turn into a higher support. If the euro holds above 1.14, a higher target could be at around 1.1520. Below 1.1370 we will turn our focus to 1.13.
GBP/USD
The cable broke above 1.37 and traders now have the 1.38-level in sight. Given the overbought situation however, we anticipate corrections towards 1.3670 and 1.36.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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