EUR/USD: remain long for 1.1180 – GrowthAces

FXStreet (Barcelona) - The Growth Aces Research Team believes that strong USD has been affecting USD strength which might delay Fed’s tightening, and hence suggest remaining long on EUR/USD, targeting 1.1180 levels.

Key Quotes

“Atlanta Fed President Dennis Lockhart, a voting member of the Fed this year, said that while he thinks it is quite likely that rates will increase by September, even if inflation does not meet the Fed's target of 2%.”

“Instead, Lockhart believes that the Fed has a bias toward looking at the employment side of the mandate.”

“In the opinion of Federal Reserve policymaker James Bullard (non-voting) it is good time to start normalizing U.S. monetary policy. He added: “Even with some normalization, monetary policy will remain exceptionally accommodative.””

“As we suggested earlier too strong USD is weighing on the U.S. economy and may delay Fed’s monetary tightening. Weaker U.S. data are in line with our scenario and make us more confident that our long EUR/USD is the right direction.”

“We stay EUR/USD long for 1.1180.”

“Resistance: 1.1062 (high Mar 18), 1.1115 (high Mar 5), 1.1185 (high Mar 4)”

“Support: 1.0891 (low Mar 24), 1.0873 (21-dma), 1.0788 (10-dma)”

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