EUR/USD Forecast: Central Banks and Earnings Reports in Focus as USD Gains Momentum
- Central banks and earnings reports take centre stage this week.
- The US Dollar is firmly up despite an optimistic market mood.
- EUR/USD gains bearish momentum and aims to pierce the 1.0800 mark.
The US Dollar is showing strength against major currencies, with the EUR/USD pair sliding towards the 1.0800 level. This week, central bank decisions and corporate earnings reports will drive market sentiment, with the focus on the Federal Reserve, Bank of Japan, and Bank of England. Investors are also looking ahead to key economic data releases, including the Nonfarm Payrolls report.
In terms of technical analysis, the EUR/USD pair faces bearish pressure as it struggles to hold above key moving averages. The 200 SMA is currently acting as support at 1.0815, with the 100 SMA moving lower. Short-term indicators suggest a continuation of the bearish trend, with potential support levels at 1.0815, 1.0770, and 1.0725, while resistance levels are seen at 1.0870, 1.0910, and 1.0945.
Overall, the USD is on a bullish trajectory, supported by positive market sentiment and upcoming economic events. Traders should monitor central bank announcements and earnings reports for potential market-moving developments.