US DOLLAR FORECAST – EUR/USDEUR/USD moves without directional conviction ahead of next week’s FOMC decisionThe Fed is seen keeping interest rates steady, but there is no consensus on guidanceThis article looks at EUR/USD’s technical outlook over the coming trading sessionsMost Read: US Dollar Soars on Inflation Risks as Fed Looms; EUR/USD, GBP/USD, USD/JPY SetupsThe U.S. dollar was broadly flat against the euro on Friday (EUR/USD 0.0% at 1.0885) after a strong showing in the previous session, despite an uptick in U.S. Treasury yields, with many traders opting to stay on the sidelines and avoid large directional bets ahead of next week’s Federal Reserve’s decision.Source: TradingViewAlthough the U.S. central bank is expected to keep its policy settings unchanged at its March meeting, there is no general consensus on what policymakers will say about the outlook. For this reason, volatility is likely to accelerate in the coming sessions across assets.Want to know where the U.S. dollar is headed over the medium term? Explore key insights in our quarterly forecast. Request your free guide now!
Recommended by Diego Colman
Get Your Free USD Forecast
In terms of possible scenarios, traders should not be surprised if the FOMC adopts a slightly more hawkish stance in light of upside inflation risks, which have clearly materialized in the latest CPI and PPI reports released a few days ago.While the Fed has stated that it intends to begin dialing back policy restraint at some point in 2024, stalled progress on disinflation, coupled with economic resilience, could force the institution to delay the start of its easing cycle and signal fewer rate cuts for the period.Presently, markets are anticipating approximately three quarter-point rate reductions through year’s end. Should policymakers indicate an intention to deliver fewer cuts than currently priced in, we could see yields push higher across the curve, bolstering the U.S. dollar in the process.Want to stay ahead of the EUR/USD’s next major move? Access our quarterly forecast for comprehensive insights. Request your complimentary guide now to stay informed on market trends!
Recommended by Diego Colman
Get Your Free EUR Forecast
EUR/USD FORECAST – TECHNICAL ANALYSISEUR/USD leveled off on Friday after falling sharply on Thursday, with prices hovering slightly above support at 1.0875. If this floor holds in the coming days, buyers may slowly start reentering the market again, setting the stage for a move towards 1.0980. On further strength, all eyes will be on 1.1020.On the flip side, if technical support caves in, sellers may feel emboldened to launch a bearish assault on 1.0850/1.0835, an area where three significant moving averages intersect. Below this band, attention will be directed towards 1.0790 and 1.0725 thereafter.EUR/USD PRICE ACTION CHARTEUR/USD Chart Created Using TradingView element inside the element. This is probably not what you meant to do!
Load your application’s JavaScript bundle inside the element instead.
Source link