DailyBubble News
DailyBubble News

EUR/USD lacks momentum, churns near 1.0750

EUR/USD experienced a period of congestion in the early part of the trading week, with limited market-driving data until Friday. The US consumer sentiment figures are on the horizon, with Fedspeak expected to influence market flows.

On Tuesday, EUR/USD hovered around the 1.0750 mark as markets awaited signals for direction. Despite caution from key US Federal Reserve officials regarding rate cuts, rate markets are still predicting at least two cuts in 2024, with the first expected in September.

European Retail Sales rebounded more than anticipated on Tuesday, with growth of 0.8% month-on-month in March. However, this did not provide a significant lift to the Euro, as EUR/USD failed to break above 1.0790.

Fed officials, including Minneapolis Fed President Neel Kashkari, emphasized the importance of high inflation and a tight labor market in determining future rate decisions. Kashkari suggested that the Fed may need to maintain current rates for an extended period if inflation does not ease.

Looking ahead, German Industrial Production data is set to be released on Wednesday, with limited market impact expected. The focus will then shift to Friday’s University of Michigan US Consumer Sentiment Index, which is projected to decrease slightly in May.

From a technical perspective, EUR/USD is currently above a demand zone near 1.0750 but faces resistance near the 200-day EMA at 1.0798. A move back towards the 1.0700 level is possible if buying interest weakens. Daily charts indicate a potential decline towards the last swing low around 1.0600.

Charts depicting the hourly and daily movements of EUR/USD show the current trend and potential areas of support and resistance.

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