The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
Last week, Christine Lagarde spoke three times. This week, she is scheduled to speak three more times. It may seem that every appearance by the European Central Bank president should trigger a strong market reaction, but in reality, not every speech captures the market's attention. Only those in which her rhetoric regarding key economic indicators or monetary policy changes meaningfully from prior statements tend to matter.
Last week, Lagarde made it clear that the current level of inflation in the Eurozone is acceptable to the ECB. This was a very important statement, allowing for a straightforward conclusion: the ECB does not intend to change its monetary policy parameters anytime soon. Lagarde noted that inflation remains stably near the target level, and minor fluctuations "around the mark" are natural and cannot be eliminated. The index will always be slightly above or below 2%, and it's not worth reacting to every such move.
At the same time, Lagarde mentioned that upside risks to inflation persist. Geopolitical shifts, changes in global trade dynamics, and sharp jumps in energy prices could push inflation substantially above the target once again. However, she did not hint at how the ECB might respond in such a scenario or whether the institution is prepared to raise rates again if necessary.
From my perspective, the Eurozone is one of the few global economies that have genuinely returned inflation to its target. For example, the United States and the United Kingdom cannot say the same. The ECB's monetary policy actions in recent years deserve full credit.
If the ECB does not plan to resume monetary easing, I have more bad news for the U.S. dollar. The Federal Reserve will continue to cut interest rates, one way or another. Therefore, the rate spread between the ECB and the Fed, which had been widening for the last year and a half and helped support the dollar, will begin to narrow — an obvious disadvantage for the American currency. It seems that the market is merely accumulating reasons for the next wave of dollar sell-offs. These reasons have already filled the trunk; now it's only a matter of time before the market shifts from building a case to taking action.
Based on my analysis of the EUR/USD pair, it continues to form a bullish wave segment. The wave pattern remains entirely dependent on the news background related to decisions by Trump and the internal and external policies of the new U.S. administration. The target for the current wave can reach up to the 1.2500 level (the 25th figure). At present, a corrective wave 4 appears to be forming, which may already be complete. The overall bullish wave structure remains intact. Therefore, I am currently considering only buy positions. By year-end, I expect the euro to rise toward 1.2245, which corresponds to the 200.0% Fibonacci.
The wave structure for GBP/USD has undergone a change. We are still dealing with a bullish impulsive wave; however, its internal structure has become harder to read. If wave 4 develops into a complex three-wave structure, the overall pattern will normalize; however, wave 4 will then be significantly longer and more complicated than wave 2. In my opinion, the most reliable reference point currently is the 1.3341 level, which corresponds to the 127.2% Fibonacci. Two failed breakout attempts at this level have signaled the market's readiness for new buying activity. The pair's targets remain above the 1.3800 level (38th figure).
*এখানে পোস্ট করা মার্কেট বিশ্লেষণ আপনার সচেতনতা বৃদ্ধির জন্য প্রদান করা হয়, ট্রেড করার নির্দেশনা প্রদানের জন্য প্রদান করা হয় না।
ইন্সটাফরেক্স বিশ্লেষণমূলক পর্যালোচনাগুলো আপনাকে মার্কেট প্রবণতা সম্পর্কে পুরোপুরি সচেতন করবে! ইন্সটাফরেক্সের একজন গ্রাহক হওয়ায়, দক্ষ ট্রেডিং এর জন্য আপনাকে অনেক সেবা বিনামূল্যে প্রদান করা হয়।
