- On Tuesday, the EUR/USD loses 0.18% in the American session.
- ECB Nagel: The ECB needs to raise rates in July if the data shows it is necessary.
- Fed rate setters lay the groundwork for 50bp hikes as Fed eyes CPI on Wednesday.
- EUR/USD Price Forecast: Major has a neutral bias to the downside, though remains range bound.
The shared currency continues to be unable to recover above 1.0600 and remains stuck at the 1.0550 area for the third consecutive trading session. At 1.0538, the EUR/USD reflects the above amid mixed sentiment in financial markets, reflected by rising European stocks while US stocks fluctuate.
Factors such as the Fed’s monetary policy tightening, which threatens to “miss” a soft landing and trigger a recession, along with China’s zero-tolerance coronavirus restrictions and the Ukraine-Russia war, threaten the economic outlook. .
Earlier in the week, reports from China showed export growth slowed to its lowest level in nearly two years as Beijing’s Covid-19 restrictions halted factory output and reduced domestic demand. . Furthermore, the conflict between Ukraine and Russia appears to be at an impasse, with no progress in hostilities and peace talks, as Russian President Vladimir Putin prepares for a protracted conflict, according to the Financial Times.
EUR/USD Price Forecast: Technical Outlook
EUR/USD remains neutral with a bearish bias, unable to break beyond the limits of the 1.0500-1.0640 area. Although the MACD line is about to cross the signal line, a rally would be capped by a confluence of resistance levels around the 1.0600-40 area.
To the upside, the first resistance on the EUR/USD would be the 1.0600 figure. A break above would expose 1.0640, the top of the aforementioned range, followed by a descending trend line passing near 1.0660-70. On the downside, the first support for the EUR/USD would be 1.0500. A break of the latter would expose the April 28 daily low at 1.0471, followed by the January 2017 cycle lows around 1.0340.
Technical levels
Source: Fx Street
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