While the long-term trend is bearish, there is a likelihood that the pair will keep rising as bulls target the key resistance at 1.0675.

Bullish View

• Buy the EUR/USD pair and set a take-profit at 1.0675.
• Add a stop-loss at 1.0500.
• Timeline: 1-2 days.

Bearish View

• Set a sell-stop at 1.0500 and add a take-profit at 1.0450.
• Add a stop-loss at 1.0550.

The EUR/USD pair moved sideways ahead of key economic events scheduled for this week. The pair is trading at 1.0555, which is about 3.5% above the lowest point this month.

ECB Pressure Continues

The EUR/USD pair has been in a recovery mode in the past few weeks as pressure on the European Central Bank (ECB) remains.

During the weekend, the German central bank president reiterated that the bank should start hiking interest rates as soon as possible in a bid to fight inflation. The concern is that the weakening euro will make push the rate of inflation higher in the coming months.

The key data to watch today will be the latest German business assessment data by the Ifo Institute. Economists expect these numbers to show that the business climate index declined from 91.8 to 91.4. On the other hand, they expect that the current assessment declined from 97.2 to 95.8. At the same time, business expectations are expected to drop from 86.7 to 83.5.

The main concern among German businesses is that inflation and the overall cost of doing business in the country is rising. The situation will likely continue as natural gas prices keep rising in the coming months.

There will be no major economic data from the US and Europe today. Therefore, investors will be focusing on a slew of economic data and events that are set to happen this week. On Tuesday, Christine Lagarde will deliver a speech in which she will likely talk about the next policy actions by the bank.

Her speech will be followed by another one by Jerome Powell of th Federal Reserve. Like last week, Powell will likely insist that the bank will continue with the tightening pace. Other key data will be the FOMC minutes, US durable goods orders, and US GDP numbers.

EUR/USD Forecast

The EUR/USD pair has been in a slow upward trend in the past few days. As it rose, the pair retested the important resistance level at 1.0600, where it struggled moving above in the first week of the month. The pair moved slightly above the 25-day moving averages while the MACD has moved above the neutral level.

Therefore, while the long-term trend is bearish, there is a likelihood that the pair will keep rising as bulls target the key resistance at 1.0675.

SOL/USD has managed a slight reversal higher in early trading this morning, but conditions remain choppy as the cryptocurrency remains near crucial lows.

SOL/USD is trading near the 88.0000 mark as of this writing, and in early trading today the cryptocurrency did manage to hit a high of nearly 88.7500. However this ratio was attained after SOL/USD also hit a low of 86.7000 yesterday. Technical traders who take an optimistic stance may try to view yesterday’s weakest price as a positive. This because Monday’s low was incrementally higher than the lows displayed on Sunday, this when Solana traversed close to the 85.0000 mark.

The broad cryptocurrency remains rather nervous, like nearly all global assets as investment houses gear their thoughts to Wednesday’s U.S Federal Reserve pronouncements. SOL/USD was trading at nearly 143.7500 on the 3^rd of April, meaning Solana has lost slightly less than 50% of its value in one month’s time. While SOL/USD was able to display a solid bullish trend from the middle of March until early April, the downward cycle which has redeveloped correlates to the broader trend among the other major digital assets.

Yesterday’s trading in SOL/USD remained rather nervous and choppy short term conditions are evident as important support levels are being tested.  If selling continues to apply pressure because of nervous behavioral sentiment, additional tests of lows could certainly be exhibited. Day traders should monitor the 87.0000 support level. SOL/USD has the ability to move fast, and though the 88.0000 juncture is now being traversed, if momentum takes Solana lower a move towards the 87.0000 depth could spark worries.

Early this morning’s push higher may be a reason for hope that SOL/USD will start to reverse higher. Optimists within the cryptocurrency world are certainly counting on a robust move upwards to develop and when it does happen, the momentum will be welcomed by buyers. If the 88.7500 resistance level is challenged soon this could be a solid indicator. However, if the price of SOL/USD is not able to establish a real move towards this nearby price up above, traders may grow impatient and skeptical again.

Volatile conditions in the broad cryptocurrency market are bound to be generated near term.  SOL/USD will not escape the choppy conditions which are likely to flourish. Speculators need to use all of their risk taking tactics wisely over the next couple of days. Sellers’ who continue to seek targeted prices below, should use take profit orders to make sure they cash out of winning positions before sudden reversals are seen. Short term goals and decisive price targets will be important for all day traders.

Solana Short-Term Outlook

Current Resistance: 88.8600

Current Support: 86.8900

High Target: 91.2900

Low Target: 83.9100

New long-term lows were made in the NZD/USD yesterday, as the Forex pair awaits impetus from the U.S Federal Reserve’s pronouncement this coming Wednesday.

The NZD/USD hovered near the 0.64100 ratio yesterday and remains within the weakest part of its long term price range as of today. Values of the NZD/USD are traversing prices not sincerely tested since June of 2020. However it should be noted that on the 4^th of April, almost one month ago, the NZD/USD was trading near the 0.70300 vicinity.

Traders are certainly aware of the downward cycle the NZD/USD has encountered the past month as financial institutions have positioned their cash holdings, as they anticipate the next interest rate hike from the U.S Federal Reserve.  However in January of this year the NZD/USD was trading momentarily near a low of around 0.64850 which highlights the forex pair has moved within these lower depths before and has managed to fight upwards.

While technical traders cannot be blamed for looking at long term charts and can plainly see the NZD/USD was trading near lows of 0.54850 in March of 2020, considerations must be correlated. Downward pressure in the NZD/USD has certainly continued to make short term support vulnerable as new lows have been created. The near term will be volatile as financial houses react to the pronouncement of the U.S central bank which will be published on late Wednesday. The lows of March 2020 were made as coronavirus fears escalated two years ago.

The U.S Fed has made it clear they want to raise interest rates by half a point tomorrow.  This hike has been digested into the Forex market already. What investors need to now worry about is what moves the Fed claims it will take in the months ahead and that is causing nervousness. Short term traders need to understand that volatility will be quite rampant near term and choppy trading with spikes need to be anticipated.

Traders who believe the NZD/USD is about to touch lows and start to reverse upwards cannot be blamed.  However timing the moment when the NZD/USD truly turns around and starts to become positive may be quite difficult to pinpoint. Traders who think new lows will be seen in the NZD and the 0.64000 mark is in peril and lower depths will be seen cannot be faulted either.

Within the choppy conditions that are likely to be demonstrated near term, speculators would be wise to use entry price orders. Igniting positions and using stop loss and take profit orders, to get in and out of positions could prove to be very helpful in the near term.

NZD/USD Short-Term Outlook

Current Resistance: 0.64710

Current Support: 0.64090

High Target: 0.65480

Low Target: 0.63810

DOT/USD has taken another negative turn in early trading this morning, generating a strong spike lower as it now has a one-month low in sight.

DOT/USD is trading above the 17.2000 mark in early trading this morning, but it started the day slightly below the 18.0000 level. The sudden burst of selling lower in Polkadot mirrors the price action being seen in the broad cryptocurrency market, which continues to see negative sentiment strengthen. The question now is if the selling being seen in DOT/USD and other cryptos will spark a reversal higher, or if there is more downside to come.

The last time DOT/USD sincerely traded below the 17.0000 mark was on the 13^th of March. It was also this date which was reflected in the broad cryptocurrency market too, when a sudden shift in sentiment began to be demonstrated and a bullish trend was displayed which brought positive price action into the marketplace. A high of nearly 23.8500 was seen on the 2^nd of April for DOT/USD, but since then bearish selling has been exhibited.

While optimistic bulls certainly still exist, sellers are once again being heard in DOT/USD and the lower price levels being demonstrated cannot be easily ignored.  One year ago today, DOT/USD was near the 38.0000 price. A record high of nearly 55.0000 was seen in early November 2021. The long bearish move seen since then looked like it may have been ready to be swept to the side in early April of this month, but the sudden price momentum lower which has mounted recently appears to be ready to produce more fireworks lower.

Support levels near 17.0000 need to be monitored in DOT/USD.  While a spike lower this morning was fast, a drop below 17 USD for Polkadot could spur on additional nervous sentiment. On the 7^th of March DOT/USD was trading a hair above the 16.0000 juncture. And as an additional scary thought, on the 24^th of February DOT/USD was trading slightly above the 14.0000 ratio. While optimists may believe DOT/USDS will produce a turnaround soon and prove buyers correct, fighting against the short term bearish trend may prove to be dangerous.

The broad cryptocurrency market appears to be fragile early this morning.  Polkadot and many of the other major digital assets did seeing selling pressure build this weekend, and as today has begun DOT/USD has seen another wave downward adding to poor sentiment.

Traders should be prepared for volatility in the near term, the cryptocurrency markets appear ready to put on a speculative violent show. Sellers of DOT/USD may be making the correct wager. Cautious traders may want to wait for slight moves higher to ignite their selling positions while looking for lower price action to be delivered again.

Polkadot Short-Term Outlook

Current Resistance: 17.8100

Current Support: 17.0500

High Target: 18.8900

Low Target: 15.9800