Top 5 EUR/USD Slips Of 2021
Major currency pairs are always on the minds of all forex traders. And when we talk about important currency pairs, EUR/USD comes to the top. This currency pair is very important for all traders. Whether you are trading EUR/USD or not.
You need to follow this pair because it has both major currencies. The United States Dollar and the Euro, both currencies are widely used in the global markets. So, if you are a forex trader trading a currency pair, you need to track this currency pair and its price fluctuations.
EUR/USD Slips Of 2021 — Let's dive deep into it
On the other hand, if you are trading EUR/USD, then it is obvious to follow and monitor the trends of this currency pair.
We will not talk about the fundamentals of these currencies. We will only talk about the current market trends for these two currencies. Why EUR/USD has a bullish market sentiment. And why it has seen bearish sentiment many times this year. And whether it will go up or down in the future? What is the long term forecast for this currency pair, bearish or bullish?
So let's analyze this important pair of money trading market. Currency trading can be made easy with the help of analysis. If you analyze financial instruments properly, then you can achieve profitable trading.
Five Major Downward Changes In EUR/USD
There have been many situations where this currency pair has seen a drop in the forex market. But we will mention the top five drops of the year. The first quarter of 2021 has shown so much bullish market sentiment for this currency pair.
However, most of the time, the USD has been gaining against the Euro. But the euro has also shown so much strength this year. So let's take a look at these market influences if you want to analyze the EUR/USD better this year.
#1. The Month End Drops
When a month ends, there is a drop or a rise in currency pairs. Whether it is a currency pair or a stock in the stock market. The end of the month always plays a big role in the price fluctuations. However, these fluctuations occur due to the volatility and liquidity of the market.
Including these month-end prices in your trading strategy is not a good idea. Nevertheless, many experienced traders use month-end lows in their trading strategies. This year, EUR/USD has been falling and USD has been rising at the end of all months.
#2. The Federal Reserve Policy
Federal Reserve policy plays an important role in the US economy. As we know, the US dollar is the key currency in this currency pair. Then, the Federal Reserve's decisions always directly affect the American dollar.
The same thing happens in 2021 and the first months of this year. The Federal Reserve policy always supports the USD because it is the main currency of the US. Federal Reserve policy has so many things that moved the United States up and in the EUR/USD pair, the USD got stronger.
#3. US Asset Announcement
This year the United States has witnessed the greatest political event in the world. Yes, we are talking about the result of the US presidential election. But before the president changed in the US, there were some announcements about the US economy. The most important announcement was made by the previous president Donald Trump.
This announcement was to develop more than millions of assets for the country. These announcements not only boosted so many sectors in the US but also boosted the USD. As a result of the USD rise, the EUR fell in the pair.
#4. Fiscal End Impact
The first months of every year include one of the most necessary financial events in the world. We are talking about the financial year. The end of a financial year always shows a great impact on various sectors, including foreign exchange.
Similarly, the end of the last fiscal year and the beginning of the current fiscal year was a major influencing factor on the EUR/USD rate.
#5. ECB Policy
European Central Bank is always there to compete with the Federal Reserve Bank US. However, it cannot develop and publish economic policies that can compete with the US. Nevertheless, the impact of ECB 's policies and actions on the EUR is enormous.
We have seen several times this year how the policies of ECB affected the euro and it rose. Because of this unilateral increase, the EUR/USD rate fell.
Understand These Market Impacts
We have all witnessed these market influences in the foreign exchange market first hand. But what do these market influences mean to a forex trader? As a beginner, what should you do with these market influences? Well, these market influences can be analyzed to know how a particular financial stock will perform in the coming quarters. The first quarter of a year is important.
The first quarter can be used as a benchmark for a particular financial instrument. So, it is very important to track these market declines to analyze them better.
How To Analyze These Major Impacts?
Now you have an idea of the five major downward movements of the EUR/USD. Whenever a currency pair moves down, there is always a single upward movement as well. This means that whenever one currency in the pair moves up individually, the currency pair falls.
To take advantage of the above five main influences, you need to analyze them. If you analyze them properly, then you will be able to get the advantage.
See Whether It Is Long Term
The first thing you need to do is figure out if a market impact is long term or short term.
Actual Reason Behind Impact
You must find out what is the real reason for the market influence. Whether that reason is practical or just due to volatility.
See The Market Trends
In addition to these market influences or major downside moves, you also need to look at the market trend. For trend trading, it is always important to track market trends along with asset price fluctuations.
Is It According To Previous Forecasts?
See if the previous price forecasts become reality or not. All market influences need to be checked against the previous forecasts. This will help you determine how accurate all forecasts and their results are.
See What World Says About It
You need to consider the experts' movements on market impact and key price forecasts. Without considering the experts' opinions, you cannot make better decisions. See what the expert traders are saying.
Summary - Top 5 EUR/USD Slips Of 2021
One of the major currency pairs, EUR/USD, is used by many traders to add trading profits to their investment portfolio. If you too are trying to add EUR/USD to your trading portfolio, then you need to consider the key price movements of EUR/USD.
See why EUR/USD has fallen many times. However, most of the time EUR/USD has shown bullish sentiment. But in the first months of the year, the currency pair saw declines many times.
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