EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Bias: EUR/USD trades below $1.03879, signaling downward pressure.
- Key Support Levels: Immediate support at $1.03220; a break below could target $1.02721.
- Resistance Zones: Watch for resistance at $1.04339 and $1.04678, capping potential rallies.
The EUR/USD pair is trading at $1.03761, down 0.02%, reflecting a modest bearish bias as it hovers below the pivot point of $1.03879.
This level acts as a critical threshold, where sustained weakness could trigger further downside momentum. Immediate resistance lies at $1.04339, followed by $1.04678 and $1.05190. A break above these levels could signal a reversal of the current bearish trend.
On the downside, the pair finds immediate support at $1.03220. A decisive move below this could open the door for further declines toward $1.02721 and potentially $1.02129, reinforcing the bearish outlook.
The 50-EMA at $1.03512 adds to the downward pressure, acting as dynamic resistance and confirming the prevailing trend.
Technical indicators suggest limited bullish momentum, with sellers maintaining control unless the euro can reclaim levels above $1.03879.
The formation of lower highs and lower lows indicates persistent bearish sentiment, with any short-term rallies likely facing resistance near key levels.
Traders are advised to watch for price action around the pivot point. A sustained break below $1.03866 could provide a favorable entry for short positions, with targets near $1.03220 and stop-loss orders above $1.04239 to manage risk effectively.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.03866
Take Profit – 1.03220
Stop Loss – 1.04239
Risk to Reward – 1:1.3
Profit & Loss Per Standard Lot = +$646/ -$373
Profit & Loss Per Mini Lot = +$64/ -$373
EUR/USD Price Analysis – Feb 05, 2025
Daily Price Outlook
During the European trading session, the EUR/USD currency pair extended its bullish rally, staying strong around the 1.0416 level and even reaching a high of 1.0431. The main reason behind this upward movement is the US Dollar (USD) losing strength for the third consecutive day.
The US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, dropped to around 107.50. This decline came as investors felt that a potential trade war wouldn’t escalate further, which helped reduce some of the risk associated with the USD.
On the other hand, the Euro (EUR) gained some momentum, despite underperforming against other major currencies. This is mainly due to the expectation that the European Central Bank (ECB) will keep its policy-easing approach.
The ECB remains confident that inflation in the Eurozone will fall back to its target of 2% by the end of the year, which has led investors to believe that the ECB might continue its current monetary policies.
EUR Struggles Amid ECB Rate Cut Expectations and US Tariff Concerns
On the EUR front, the shared currency has been struggling against its major peers despite gaining against the US Dollar. Investors expect the European Central Bank (ECB) to continue cutting interest rates, as policymakers are confident that inflation will return to the 2% target this year.
In an interview, ECB Vice President Luis de Guindos stated that inflation is moving toward the ECB’s goal but could see a slight increase in the coming months due to energy prices. However, he remained uncertain about how low interest rates would eventually go.
Last week, the ECB lowered its Deposit Facility rate by 25 basis points to 2.75% and maintained that its monetary policy remains restrictive. Traders now anticipate three more rate cuts in upcoming meetings.
Meanwhile, concerns over the Eurozone economy continue to grow, especially with fears that the European Union (EU) might be the next target for US tariffs if Donald Trump wins the election. Over the weekend, Trump said the EU has taken unfair advantage of the US and hinted at imposing tariffs.
This uncertainty has made investors cautious about the Euro’s future. Despite these challenges, EUR/USD has managed to gain due to the US Dollar’s recent weakness.
EUR/USD – Technical Analysis
The EUR/USD pair is trading at $1.03761, down 0.02%, reflecting a modest bearish bias as it hovers below the pivot point of $1.03879.
This level acts as a critical threshold, where sustained weakness could trigger further downside momentum. Immediate resistance lies at $1.04339, followed by $1.04678 and $1.05190. A break above these levels could signal a reversal of the current bearish trend.
On the downside, the pair finds immediate support at $1.03220. A decisive move below this could open the door for further declines toward $1.02721 and potentially $1.02129, reinforcing the bearish outlook.
The 50-EMA at $1.03512 adds to the downward pressure, acting as dynamic resistance and confirming the prevailing trend.
Technical indicators suggest limited bullish momentum, with sellers maintaining control unless the euro can reclaim levels above $1.03879.
The formation of lower highs and lower lows indicates persistent bearish sentiment, with any short-term rallies likely facing resistance near key levels.
Traders are advised to watch for price action around the pivot point. A sustained break below $1.03866 could provide a favorable entry for short positions, with targets near $1.03220 and stop-loss orders above $1.04239 to manage risk effectively.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish bias above $1.02179, with an upside target at $1.02917 and potential extensions toward $1.03516.
- Support at $1.01770 is key; a break below could trigger declines toward $1.01249 and $1.00826.
- 50-EMA at $1.04228 remains a strong resistance, capping broader bullish momentum unless decisively broken.
The EUR/USD pair is trading at $1.02379, up 1.14%, reflecting renewed bullish momentum after breaking past key technical levels. The currency pair is currently hovering just above its pivot point at $1.02375, a critical level that could dictate the near-term trend.
Despite this upside movement, EUR/USD remains below its 50-day Exponential Moving Average (EMA) at $1.04228, suggesting that the broader trend is still under pressure unless a decisive breakout occurs.
If bullish sentiment persists, the next immediate resistance lies at $1.02917, a key hurdle that, if breached, could open the door towards $1.03516 and potentially $1.04340.
On the flip side, failure to sustain above the pivot point may trigger a pullback toward immediate support at $1.01770. Further downside risks include targets at $1.01249 and $1.00826, where buying interest could re-emerge.
The technical setup favors a cautiously bullish outlook above $1.02179, with an entry suggested at this level. A take-profit target is set at $1.02917, capturing potential gains from continued upward momentum, while a stop-loss at $1.01685 helps limit downside risks.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.02179
Take Profit – 1.02917
Stop Loss – 1.01685
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$738/ -$494
Profit & Loss Per Mini Lot = +$73/ -$49
EUR/USD Price Analysis – Feb 03, 2025
Daily Price Outlook
During the European trading session, the EUR/USD currency pair experienced downward trend, driven by the strength of the US Dollar.
The demand for the US Dollar as a safe-haven asset surged significantly following US President Donald Trump's escalating trade war rhetoric.
The US Dollar Index (DXY), which measures the Greenback's value against six major currencies, surged above the 109.50 mark. As a result, EUR/USD dropped over 1%, reaching near 1.0230 at the start of the week.
Moreover, the losses in the EUR/USD pair were further bolstered by the President Trump reiterated his threats to impose tariffs on the European Union (EU).
Over the weekend, Trump had already slapped 25% tariffs on Canada and Mexico, along with 10% tariffs on China.
He also warned of potential tariff hikes on the EU, although he did not provide further details. This uncertainty surrounding trade policies put additional pressure on the EUR/USD pair.
Trump's Tariff Threats and Economic Slowdown Pressure on EUR/USD
President Trump has once again threatened to impose tariffs on the European Union (EU), intensifying trade tensions. Over the weekend, he announced 25% tariffs on Canada and Mexico and 10% on China.
Trump further warned that similar measures could be applied to the EU, claiming that the region has “taken advantage” of the US by not buying enough American goods. He emphasized that the EU benefits more from trade with the US than vice versa, adding to concerns over the EUR/USD pair.
However, the possibility of tariffs on the Eurozone comes at a challenging time for the region. The Eurozone economy is already showing signs of slowdown, with preliminary GDP data for Q4 2024 showing no growth, following a 0.4% expansion in Q3.
Germany, the Eurozone’s largest economy, contracted by 0.2% year-over-year in Q4, highlighting the weakness. The threat of tariffs could make matters worse, putting more pressure on the euro and pushing the EUR/USD lower.
In response to these economic challenges, the European Central Bank (ECB) has been lowering interest rates. Last Thursday, it cut the Deposit Facility rate to 2.75% and signaled a clear path for further cuts.
Traders expect the ECB to make three more rate cuts by the summer. Meanwhile, inflation data from January showed mixed results, adding uncertainty to the Eurozone’s economic outlook, further weighing on the EUR/USD pair.
EUR/USD – Technical Analysis
The EUR/USD pair is trading at $1.02379, up 1.14%, reflecting renewed bullish momentum after breaking past key technical levels. The currency pair is currently hovering just above its pivot point at $1.02375, a critical level that could dictate the near-term trend.
Despite this upside movement, EUR/USD remains below its 50-day Exponential Moving Average (EMA) at $1.04228, suggesting that the broader trend is still under pressure unless a decisive breakout occurs.
If bullish sentiment persists, the next immediate resistance lies at $1.02917, a key hurdle that, if breached, could open the door towards $1.03516 and potentially $1.04340.
On the flip side, failure to sustain above the pivot point may trigger a pullback toward immediate support at $1.01770. Further downside risks include targets at $1.01249 and $1.00826, where buying interest could re-emerge.
The technical setup favors a cautiously bullish outlook above $1.02179, with an entry suggested at this level. A take-profit target is set at $1.02917, capturing potential gains from continued upward momentum, while a stop-loss at $1.01685 helps limit downside risks.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD struggles near $1.03887, with resistance at $1.04291 and $1.04667.
- 50-day EMA at $1.04290 acts as a key resistance level.
- Break below $1.03413 may lead to further downside toward $1.03069.
EUR/USD is consolidating near $1.03889, struggling to gain traction after recent downside pressure. The pair is hovering around the pivot point at $1.03887, acting as a key battleground for bulls and bears.
Immediate resistance is at $1.04291, with further hurdles at $1.04667 and $1.05118. A break above these levels could strengthen bullish sentiment and push EUR/USD toward fresh highs.
On the downside, immediate support is at $1.03413, with stronger levels at $1.03069 and $1.02665. A break below $1.03413 could accelerate selling pressure, reinforcing the bearish outlook. The 50-day EMA at $1.04290 is acting as a dynamic resistance level, limiting upside potential.
Technically, the pair remains in a cautious stance, with buyers attempting to hold ground above $1.03819. A move above this level could trigger a retest of $1.04291, aligning with the 50-day EMA. However, failure to sustain above the pivot point may push the pair lower, bringing critical support levels into focus.
The outlook remains neutral-to-bullish as long as EUR/USD holds above $1.03819. A decisive break above $1.04291 could shift momentum in favor of the bulls, while a dip below $1.03413 would reinforce a bearish bias, signaling further declines.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.03819
Take Profit – 1.04291
Stop Loss – 1.03524
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$472/ -$295
Profit & Loss Per Mini Lot = +$47/ -$29
EUR/USD Price Analysis – Jan 31, 2025
Daily Price Outlook
During the European trading session, the EUR/USD currency pair struggled to stop its downward trend, staying under pressure around the 1.0377 level and even hitting an intraday low of 1.0366.
However, the main reason behind this decline is the weakening of the Euro. A slowdown in inflationary pressures across six German states contributed to the fall. This has led to expectations that the ECB might ease its monetary policy in the near future.
At the same time, the US Dollar (USD) is maintaining a strong position. The US Dollar Index (DXY) remains firm, hovering around 108.20, as the greenback benefits from its safe-haven status.
The ongoing uncertainty in global markets has strengthened demand for the US Dollar. Moreover, President Donald Trump's recent comments about imposing heavy tariffs on North America and BRICS countries have added further pressure on the Euro.
This combination of factors has kept EUR/USD under pressure, as investors focus on the broader strength of the US Dollar.
US Dollar Strengthens Amid Tariff Threats and Fed's Cautious Stance
On the US front, the US Dollar (USD) continues to maintain strength, with the US Dollar Index (DXY) trading around 108.20. The greenback's appeal as a safe-haven currency is bolstered by recent comments from former President Donald Trump.
He reiterated his plans to impose hefty tariffs on countries in North America and the BRICS nations, creating further uncertainty in global markets.
Trump took to his social media platform, TruthSocial, warning that any country attempting to create or back a new currency to replace the US Dollar would face a 100% tariff and be shut out of the US market.
Market experts believe that Trump's use of tariffs is part of his broader economic strategy, which could potentially lead to inflationary pressures in the US economy. This could support the Federal Reserve (Fed) in maintaining its current interest rate stance.
The Fed recently decided to keep interest rates unchanged in the range of 4.25%-4.50% and indicated that it will remain cautious until there is clear progress in reducing inflation or signs of weakness in the labor market.
Looking ahead, the next key data point for the US Dollar will be the Personal Consumption Expenditure (PCE) Price Index for December, set to be released at 13:30 GMT. Economists expect a slight rise in core PCE inflation to 0.2% on a monthly basis, compared to 0.1% in November. Year-on-year, core PCE inflation is expected to stay steady at 2.8%.
EUR Faces Pressure Amid Slowing Inflation and ECB's Cautious Outlook
On the EUR front, the Euro (EUR) is facing pressure as it weakens against other currencies. This decline comes amid a slowdown in inflation in six German states, with softer-than-expected Consumer Price Index (CPI) data for January.
The lower inflation figures have raised confidence that the Eurozone is on track to return to the European Central Bank’s (ECB) target inflation rate of 2%. This could potentially lead to the ECB easing its monetary policy in the future.
ECB President Christine Lagarde expressed optimism in her recent statement, declaring a victory over inflation for this year. The ECB reduced its Deposit Facility Rate by 25 basis points (bps) to 2.75%, signaling confidence in its fight against rising prices.
Meanwhile, Estonian Central Bank chief Madis Muller mentioned that it is realistic to expect inflation to be near 2% by mid-year. However, Lagarde cautioned that the ECB is still in “restrictive territory” and that future decisions will be made on a meeting-by-meeting basis, depending on the incoming data.
Looking ahead, investors are keenly awaiting the Eurozone’s Harmonized Index of Consumer Prices (HICP) data for January, which is set to be released on Monday. Before that, the preliminary German HICP data will be published at 13:00 GMT.
However, the impact of the German data is expected to be limited, as inflation in six states has already provided a clear picture of current price trends.
EUR/USD – Technical Analysis
EUR/USD is consolidating near $1.03889, struggling to gain traction after recent downside pressure. The pair is hovering around the pivot point at $1.03887, acting as a key battleground for bulls and bears.
Immediate resistance is at $1.04291, with further hurdles at $1.04667 and $1.05118. A break above these levels could strengthen bullish sentiment and push EUR/USD toward fresh highs.
On the downside, immediate support is at $1.03413, with stronger levels at $1.03069 and $1.02665. A break below $1.03413 could accelerate selling pressure, reinforcing the bearish outlook. The 50-day EMA at $1.04290 is acting as a dynamic resistance level, limiting upside potential.
Technically, the pair remains in a cautious stance, with buyers attempting to hold ground above $1.03819. A move above this level could trigger a retest of $1.04291, aligning with the 50-day EMA. However, failure to sustain above the pivot point may push the pair lower, bringing critical support levels into focus.
The outlook remains neutral-to-bullish as long as EUR/USD holds above $1.03819. A decisive break above $1.04291 could shift momentum in favor of the bulls, while a dip below $1.03413 would reinforce a bearish bias, signaling further declines.
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EUR/USD Price Analysis – Jan 29, 2025
Daily Price Outlook
During the European trading session, the EUR/USD currency pair remained weak around the 1.0402 level, dipping to an intra-day low of 1.0394.
This downward movement is mainly due to the cautious mood in the market ahead of two key events. First, investors are awaiting the U.S.
Federal Reserve's (Fed) monetary policy announcement, expected at 19:00 GMT. The Fed is likely to keep interest rates steady at 4.25%-4.50%, as inflation has slowed but hasn't yet hit the target, and the labor market has stabilized. This uncertainty is keeping the EUR/USD pair under pressure.
Another factor weighing on the Euro is the European Central Bank’s (ECB) meeting scheduled for Thursday. The market has already priced in a 25 basis points (bps) rate cut, lowering the ECB's Deposit Rate to 2.75%.
Traders expect the ECB to continue cutting rates in the future, which would make the Euro less attractive in both the short and long term.
These two factors—the Fed’s cautious stance and the ECB’s expected rate cut—are contributing to the overall bearish sentiment for the EUR/USD pair.
EUR Under Pressure Amid ECB Rate Cuts and Concerns Over U.S. Tariffs
On the EUR front, the shared currency has been under pressure due to the upcoming European Central Bank (ECB) meeting, which is expected to result in a 25 basis point interest rate cut, bringing the Deposit Rate down to 2.75%.
Traders also expect the ECB to continue cutting rates in future meetings. These moves are seen as negative for the Euro in both the short and long term, adding to the cautious mood surrounding the EUR/USD pair.
However, the situation is worsened by concerns about the Eurozone economy, especially with the potential impact of U.S. President Trump’s tariffs.
Germany, the largest economy in the region, is predicted to face another year of economic decline, largely due to ongoing structural weaknesses that the government has failed to address.
The German economy is expected to shrink for the third consecutive year, with industrial growth particularly suffering.
Investors are closely watching ECB President Christine Lagarde’s press conference for more details on how Europe plans to respond to Trump’s tariffs.
Lagarde recently warned at the World Economic Forum that Europe needs to prepare for the possible impact, as Trump's tariffs could target specific sectors.
Analysts are concerned that these tariffs could hurt the Euro, with U.S. Treasury Secretary Scott Bessent proposing a universal 2.5% tariff, which could increase monthly. This raises concerns about the Euro’s potential for growth.
EUR/USD – Technical Analysis
The EUR/USD pair is showing modest gains, trading at $1.04421, up 0.12%, as it attempts to build momentum above key support levels. The price is hovering near the pivot point at $1.04208, signaling potential upside if buyers maintain control.
Technical indicators suggest that short-term bullish sentiment prevails, but the 50-day EMA at $1.04500 remains a key resistance level that must be breached for further gains.
A decisive move above $1.04667 could push EUR/USD toward the next resistance at $1.04990, with an extended rally targeting $1.05334.
However, failure to sustain above the pivot may trigger downside pressure, leading to immediate support at $1.03971, followed by deeper retracement toward $1.03721 and $1.03413.
The broader outlook depends on macroeconomic factors, including U.S. economic data, Federal Reserve policy signals, and European Central Bank rhetoric. If risk sentiment remains positive and the dollar weakens, EUR/USD could attempt a bullish breakout.
Given current price action, a buy position above $1.04208, with a target at $1.04674 and a stop-loss at $1.04015, aligns with the prevailing trend.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD trades above $1.04208 pivot; holding this level supports further upside.
- Immediate resistance at $1.04667; a breakout targets $1.04990 next.
- 50-day EMA at $1.04500 acts as a key hurdle; failure to clear it may trigger consolidation
The EUR/USD pair is showing modest gains, trading at $1.04421, up 0.12%, as it attempts to build momentum above key support levels. The price is hovering near the pivot point at $1.04208, signaling potential upside if buyers maintain control.
Technical indicators suggest that short-term bullish sentiment prevails, but the 50-day EMA at $1.04500 remains a key resistance level that must be breached for further gains.
A decisive move above $1.04667 could push EUR/USD toward the next resistance at $1.04990, with an extended rally targeting $1.05334.
However, failure to sustain above the pivot may trigger downside pressure, leading to immediate support at $1.03971, followed by deeper retracement toward $1.03721 and $1.03413.
The broader outlook depends on macroeconomic factors, including U.S. economic data, Federal Reserve policy signals, and European Central Bank rhetoric. If risk sentiment remains positive and the dollar weakens, EUR/USD could attempt a bullish breakout.
Given current price action, a buy position above $1.04208, with a target at $1.04674 and a stop-loss at $1.04015, aligns with the prevailing trend.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.04208
Take Profit – 1.04674
Stop Loss – 1.04015
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$466/ -$193
Profit & Loss Per Mini Lot = +$46/ -$19
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD faces resistance at $1.04971; a break above could fuel bullish momentum.
- The pair remains supported above the 50 EMA at $1.04269, signaling possible upward movement.
- A break below $1.03971 support could push the pair lower toward $1.03515.
The EUR/USD pair is experiencing downward pressure, currently trading at $1.04591, marking a 0.32% decline for the session. The pair has struggled to hold above the pivot point at $1.04471, which serves as a key level for directional bias.
A sustained move above this level could trigger renewed bullish momentum, with immediate resistance standing at $1.04971. Further upside potential is seen at $1.05329 and $1.05682 if bullish sentiment persists.
On the downside, the pair faces immediate support at $1.03971, with additional cushions at $1.03515 and $1.03012. A break below these levels could intensify selling pressure, pushing EUR/USD into a deeper correction phase.
The broader market sentiment remains cautious as investors await key economic data from the Eurozone and the U.S., particularly inflation reports and central bank commentary, which could drive volatility in the pair.
Technical indicators suggest a neutral to bullish outlook, with the 50-day EMA positioned at $1.04269, providing dynamic support.
If the pair maintains strength above this moving average, it could signal further buying interest. However, failure to sustain above $1.04470 might invite sellers back into the market.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.04470
Take Profit – 1.04967
Stop Loss – 1.04100
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$497/ -$370
Profit & Loss Per Mini Lot = +$49/ -$370
EUR/USD Price Analysis – Jan 27, 2025
Daily Price Outlook
During the European trading session, the EUR/USD currency pair has been making a strong rebound, moving back towards the 1.0510 level. The pair is on track to break above its six-week high of 1.0520.
This recovery comes after the US Dollar gave up its earlier intraday gains, which had been fueled by concerns over potential tariffs on Colombia proposed by former President Donald Trump.
At the same time, the Euro (EUR) is gaining momentum as markets await the European Central Bank’s (ECB) upcoming monetary policy decision.
The ECB is widely expected to lower its Deposit Facility rate by 25 basis points, bringing it down to 2.75%.
Additionally, the Main Refinancing Operations Rate is likely to decrease to 2.9%. This would mark the fourth consecutive interest rate cut by the ECB.
EUR/USD Strengthens Ahead of ECB Rate Cut Expectations and Economic Data
On the EUR front, the shared currency has been strengthening as the US Dollar weakens. This move is largely driven by a shift in market sentiment, with traders anticipating a rate cut from the European Central Bank (ECB).
The ECB is expected to lower its Deposit Facility rate by 25 basis points, bringing it to 2.75%. This would be the fourth consecutive rate cut by the central bank.
As a result, the Euro is edging higher ahead of the ECB's monetary policy decision, with markets looking for fresh guidance from ECB President Christine Lagarde on how the bank plans to handle economic challenges, including the potential impact of former President Trump’s tariffs on the Eurozone.
Traders are confident that the ECB will continue to cut rates, especially given the Eurozone's inflation is under control and growth prospects remain sluggish.
Investors are also expecting three more rate cuts this year during the ECB's meetings in the first half. The upcoming press conference by Lagarde will be crucial for any hints on future monetary policies and the ECB’s response to external pressures.
On the economic front, data from Germany is showing mixed signals. The German IFO Business Climate Index rose slightly to 85.1 in January, beating expectations. However, the IFO Expectations Index, which gauges future sentiment, slowed more than expected.
This week, investors will also be focusing on the Eurozone’s preliminary Q4 GDP data, expected to show a 1% growth year-over-year, which is an improvement from the previous quarter's 0.9% growth.
US Dollar Weakens as Tariff Concerns Ease, Investors Eye Fed and ECB Rate Decisions
On the US front, the broad-based US dollar has reversed its earlier gains as concerns about tariffs on Colombia by former President Donald Trump eased. Trump had proposed a 25% tariff on Colombia after the country refused to accept military flights carrying deported immigrants from the US.
However, the situation shifted when the Colombian government agreed to Trump's terms, putting the proposed tariffs "on hold." As a result, the US Dollar Index (DXY), which tracks the Greenback against six major currencies, slid to around 107.00, driving the EUR/USD pair higher.
Market sentiment remains cautious, with investors awaiting important interest rate decisions from the Federal Reserve (Fed) and the European Central Bank (ECB) this week. The Fed is expected to keep interest rates unchanged within the 4.25%-4.50% range, according to the CME FedWatch tool.
Investors will be closely watching Fed Chair Jerome Powell's press conference for any hints about the central bank's stance, particularly in response to Trump's calls for immediate rate cuts.
On the US economic front, key data releases this week include Durable Goods Orders, the Personal Consumer Expenditure Price Index (PCE) for December, and preliminary Q4 Gross Domestic Product (GDP) data.
These reports will provide further insights into the strength of the US economy and could influence market expectations around future Fed policy.
The easing of tariff concerns between the US and Colombia has led to a weaker US Dollar, causing the EUR/USD pair to rise. Investor focus on upcoming interest rate decisions from the Fed and ECB adds further uncertainty to the pair's movement.
EUR/USD – Technical Analysis
The EUR/USD pair is experiencing downward pressure, currently trading at $1.04591, marking a 0.32% decline for the session. The pair has struggled to hold above the pivot point at $1.04471, which serves as a key level for directional bias.
A sustained move above this level could trigger renewed bullish momentum, with immediate resistance standing at $1.04971. Further upside potential is seen at $1.05329 and $1.05682 if bullish sentiment persists.
On the downside, the pair faces immediate support at $1.03971, with additional cushions at $1.03515 and $1.03012. A break below these levels could intensify selling pressure, pushing EUR/USD into a deeper correction phase.
The broader market sentiment remains cautious as investors await key economic data from the Eurozone and the U.S., particularly inflation reports and central bank commentary, which could drive volatility in the pair.
Technical indicators suggest a neutral to bullish outlook, with the 50-day EMA positioned at $1.04269, providing dynamic support.
If the pair maintains strength above this moving average, it could signal further buying interest. However, failure to sustain above $1.04470 might invite sellers back into the market.
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