The Fed’s Plans for 2026 Mean You Should Make This 1 Trade Now

Core Viewpoint - March Euro currency futures are presenting a selling opportunity due to recent price weakness and a bearish trend reversal indicated by technical analysis [1][2]. Group 1: Technical Analysis - The price action in March Euro currency futures has negated an uptrend, indicating that bullish momentum is fading [1]. - A bearish line crossover signal has been produced by the MACD indicator, with the blue MACD line crossing below the red trigger line [1]. - A move below the support level at 1.1750 would empower Euro bears and create a selling opportunity, with a downside price objective of 1.1500 or lower [3]. Group 2: Fundamental Analysis - Sticky U.S. inflation is likely to lead to a less dovish Federal Reserve in 2026, which is bullish for the U.S. dollar and bearish for the Euro currency [2]. - Concerns regarding budget deficits in European Union countries are also contributing to a bearish outlook for the Euro currency [2]. Group 3: Trading Strategy - Technical resistance is identified at the December high of 1.1586, where a protective buy stop should be placed just above this level [3].