EURUSD has fallen sharply in recent days
Updated
The US dollar strengthened last week, reaching its highest level since mid-February. Despite initial losses, the greenback reversed its trend in response to a shift in global interest rate expectations. Speculation arose that other central banks may relax their policies earlier than the Federal Reserve. The European Central Bank could be among them.
This week, the release of the core PCE deflator will be a significant event on the U.S. economic calendar. Due to the closure of international markets on Good Friday, the true impact of the data may not be fully apparent until Monday. However, volatility could still occur due to lower liquidity. The upcoming PCE report is expected to show a 0.3% month-on-month increase in the core price index indicator for February, keeping the 12-month reading at 2.8%. If the result exceeds this estimate, it could be positive for the dollar and potentially delay any moves towards a looser policy stance by U.S. policymakers.
EURUSD FORECAST - TECHNICAL ANALYSIS
EUR/USD has fallen sharply in recent days, breaching both trendline support and the 200-day simple moving average at 1.0835, signaling a bearish shift. If losses accelerate in the coming week, a key technical floor to watch emerges at 1.0800. Below this area, the focus will be on 1.0725.
On the other hand, if bulls mount a comeback and spark a rebound, resistance can be identified in the 1.0835-1.0850 band. In the event of a bullish push past this range, attention will be directed towards the 100-day simple moving average, followed by 1.0890 and 1.0925 in case of sustained strength.
This week, the release of the core PCE deflator will be a significant event on the U.S. economic calendar. Due to the closure of international markets on Good Friday, the true impact of the data may not be fully apparent until Monday. However, volatility could still occur due to lower liquidity. The upcoming PCE report is expected to show a 0.3% month-on-month increase in the core price index indicator for February, keeping the 12-month reading at 2.8%. If the result exceeds this estimate, it could be positive for the dollar and potentially delay any moves towards a looser policy stance by U.S. policymakers.
EURUSD FORECAST - TECHNICAL ANALYSISEUR/USD has fallen sharply in recent days, breaching both trendline support and the 200-day simple moving average at 1.0835, signaling a bearish shift. If losses accelerate in the coming week, a key technical floor to watch emerges at 1.0800. Below this area, the focus will be on 1.0725.
On the other hand, if bulls mount a comeback and spark a rebound, resistance can be identified in the 1.0835-1.0850 band. In the event of a bullish push past this range, attention will be directed towards the 100-day simple moving average, followed by 1.0890 and 1.0925 in case of sustained strength.
Note
Price is approaching the RESISTANCE ZONETrade active
Price touched the RESISTANCE AREA and decreased as strategyNote
🟢The euro zone economy returns to growth for the first time in nearly a year with the expansion of the services sector.Note
Note
The driving force for recovery was the selling pressure on the USD when the DXY index dropped to 105.78. However, the upside prospects for EURUSD may be quite limited as the market is expecting that the ECB will cut interest rates in June, putting pressure on the Euro.
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