Community Forecasts for March 14 - 18: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Mario Draghi's comments were the main driver for the most traded currency pair last week, thus currency pair managed to jump reaching 1.12 level on Thursday evening and Friday. The ECB President Mario Draghi announced an aggressive package of additional measures to ease monetary policy in the single European currency region, but he blunted his message by suggesting rates will not move further. The ECB decided cut the deposit rate further into negative territory, from -0.3% to -0.4%, while the main refinancing rate was surprisingly cut as well from 0.05% to 0.00% and the marginal lending facility was lowered by 5 basis points to 0.25%. Meanwhile, almost, during the whole week, the single currency failed to move after several economic output figures, and remained approximately at the 1.10 level. According to Eurostat, the Euro zone's GDP remained at 0.3% in the fourth quarter and the yearly print ticked higher from 1.5% to 1.6%. The pair closed the week on a 1.12 mark.
Despite the fact the EUR/USD currency pair has been trading in a strong uptrend on Friday, this week's traders' opinions divided almost equally. Dukascopy Community members see the pair closing at 1.09 this Friday, March 18. This level is slightly below the weekly pivot, suggesting a close behind this level will indicate further correction or even a beginning of a new trend to the downside. 
Despite the fact market sentiment is still bullish, with 54% of opened positions being long. At the same time, 45% of respondents are having bearish sentiment on the pair.
This week's highlight is the FOMC meeting as well as Fed interest rate decision on Wednesday.  From the European side, in turn, Trade Balance and Consumer Price Index are highly awaited on Friday. 

© Dukascopy Bank SA
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