The pair has skilled a notable decline, at the moment stabilising round 1.0648. Final week, the pair recorded its most important weekly achieve since 2022, fuelled by the anticipation of persistently excessive rates of interest within the US and escalated conflicts within the Center East.
The US greenback appreciated by 1.6% over the week towards a basket of six main currencies, reaching one other 34-year excessive towards the Japanese yen and experiencing its most substantial weekly enhance towards the British pound since July 2023.
Current US inflation information and the Federal Reserve’s cautious stance have tempered expectations for substantial rate of interest cuts this yr. Initially, six cuts had been anticipated in the beginning of the yr, decreased to a few in early April, and now simply two cuts are forecasted. In distinction, European financial authorities have hinted at potential fee cuts inside the coming months.
Market expectations for the primary Fed fee minimize have shifted from June to September, reflecting ongoing considerations about inflation and uncertainty about whether or not the financial atmosphere will assist easing financial insurance policies quickly. Moreover, the disputes within the Center East have bolstered the safe-haven attraction of the US greenback, additional supporting its energy.
EUR/USD technical evaluation
On the H4 chart of EUR/USD, the pair fashioned a consolidation vary round 1.0733 earlier than starting a downward wave to 1.0622. A brand new consolidation vary is at the moment forming above this degree. An upward exit from this vary might result in a corrective transfer in direction of 1.0733. Conversely, a downward exit would possibly sign a continuation of the decline to 1.0585. The MACD indicator, with its sign line under zero and directed downwards, helps this bearish situation.
The H1 chart exhibits ongoing improvement within the downward wave in direction of 1.0585. After finishing an increase to 1.0622, the market is at the moment correcting to 1.0660. Following this correction, an additional decline to 1.0585 is anticipated. This bearish outlook is confirmed by the Stochastic oscillator, at the moment above 80, with an anticipated fall to the 20 mark, indicating potential for additional declines.
By RoboForex Analytical Division
Disclaimer
Any forecasts contained herein are based mostly on the creator’s specific opinion. This evaluation might not be handled as buying and selling recommendation. RoboForex bears no duty for buying and selling outcomes based mostly on buying and selling suggestions and evaluations contained herein.
