EUR/USD Weekly Forecast: Impacts of Recent Developments
After recent key events, we observe the following trends in the EUR/USD pair:
Powell’s Comments: Policymakers expressed more confidence in lowering inflation, affecting the dollar’s strength.
US Sales Report: June sales exceeded expectations, influencing market sentiment.
ECB Meeting Outcome: The European Central Bank maintained rates without clear future guidance, creating uncertainty.
Ups and Downs of EUR/USD
The EUR/USD pair experienced fluctuations throughout the week:
Early Gains: The dollar weakened at the beginning of the week following Powell’s statements, boosting the euro.
Investor Confidence: Anticipation of a Fed rate cut in September led to further dollar decline despite positive US sales data.
ECB Impact: The euro faltered after the ECB meeting due to unclear guidance on future policy.
Key Events for EUR/USD Next Week
Focus will shift to US data releases, particularly GDP and durable goods reports:
GDP Expectations: Economic growth remains a crucial indicator for Fed rate decisions.
Durable Goods Orders: Demand levels will influence the probability of rate cuts.
EUR/USD Weekly Technical Forecast
Technical analysis suggests the following:
Price Movement: The EUR/USD price retraced after hitting channel resistance, maintaining a bullish trend.
Technical Indicators: The price is above the 22-SMA, with the RSI indicating strong bullish momentum.
Future Outlook: A continuation of the bullish bias is expected if higher highs and lows persist.
We recommend monitoring these key factors for informed trading decisions.
Source : www.forexcrunch.com