EUR/USD Forecast: US Dollar falls as US inflation eases by more than anticipated
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADEEUR/USD Current price: 1.0816
- The US Consumer Price Index rose by less than expected in May.
- Financial markets turned optimistic ahead of the Federal Reserve’s announcement.
- EUR/USD turned bullish in the near term, faces immediate resistance at around 1.0840.
The EUR/USD pair trades well above the 1.0800 threshold, filling the weekly opening gap and bullish following the release of United States (US) data. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose 3.3% YoY in May after hitting 3.4% in April. The CPI remained stable on a monthly basis, easing from the previous 0.3%. The core readings, which exclude volatile food and energy prices, were also below forecast and eased from the April readings.
Easing price pressures in the world’s largest economy prompted optimism on financial boards. Stocks turned firmly north, pushing high-yielding currencies higher, while the US Dollar entered a sell-off spiral.
The rally stalled as speculative interest faces another challenge in a few hours. The Federal Reserve (Fed) will announce its decision on monetary policy in a few hours. The Fed is widely expected to keep rates on hold, with the focus on whether policymakers maintain the hawkish stance from the previous meeting or not.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart shows EUR/USD recovered above directionless 100 and 200 Simple Moving Averages (SMAs), while a bearish 20 SMA provides dynamic resistance at around 1.0840. At the same time, technical indicators picked up bullish strength but are currently struggling to overcome their midlines, which is not enough to anticipate another leg north.
According to the 4-hour chart, EUR/USD is bullish in the near term. Technical indicators aim north vertically, having surpassed their midlines. At the same time, the pair overcame the 20 and 200 SMAs but faces near-term resistance from a mildly bearish 100 SMA at around 1.0840. Overall, it seems investors will hold additional fire until after the Fed.
Support levels: 1.0790 1.0750 1.0710
Resistance levels: 1.0840 1.0885 1.0920
EUR/USD Current price: 1.0816
- The US Consumer Price Index rose by less than expected in May.
- Financial markets turned optimistic ahead of the Federal Reserve’s announcement.
- EUR/USD turned bullish in the near term, faces immediate resistance at around 1.0840.
The EUR/USD pair trades well above the 1.0800 threshold, filling the weekly opening gap and bullish following the release of United States (US) data. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose 3.3% YoY in May after hitting 3.4% in April. The CPI remained stable on a monthly basis, easing from the previous 0.3%. The core readings, which exclude volatile food and energy prices, were also below forecast and eased from the April readings.
Easing price pressures in the world’s largest economy prompted optimism on financial boards. Stocks turned firmly north, pushing high-yielding currencies higher, while the US Dollar entered a sell-off spiral.
The rally stalled as speculative interest faces another challenge in a few hours. The Federal Reserve (Fed) will announce its decision on monetary policy in a few hours. The Fed is widely expected to keep rates on hold, with the focus on whether policymakers maintain the hawkish stance from the previous meeting or not.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart shows EUR/USD recovered above directionless 100 and 200 Simple Moving Averages (SMAs), while a bearish 20 SMA provides dynamic resistance at around 1.0840. At the same time, technical indicators picked up bullish strength but are currently struggling to overcome their midlines, which is not enough to anticipate another leg north.
According to the 4-hour chart, EUR/USD is bullish in the near term. Technical indicators aim north vertically, having surpassed their midlines. At the same time, the pair overcame the 20 and 200 SMAs but faces near-term resistance from a mildly bearish 100 SMA at around 1.0840. Overall, it seems investors will hold additional fire until after the Fed.
Support levels: 1.0790 1.0750 1.0710
Resistance levels: 1.0840 1.0885 1.0920
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.