EUR/USD Price Forecast: Can the Euro Continue to Soar?
- Fed Meeting Minutes Release Today
- Markets Cautious as US Dollar Remains Weak
- EUR/USD Overbought but Potential for Further Gains
The EUR/USD pair is on the rise, nearing the December 2023 high at 1.1138 as Wall Street prepares to open. Despite a bearish market sentiment, the US Dollar continues to struggle, with all eyes on the upcoming Federal Reserve monetary policy meeting in September.
Investors are confident in a rate cut by the Fed next month, with most expecting a 25 bps reduction. This optimism has led to a rally in US markets and a decrease in speculative interest in the USD.
As the market awaits the release of the FOMC meeting Minutes, the impact is expected to be limited given recent comments from Fed officials. The technical outlook for EUR/USD remains positive, with indicators signaling further upside potential.
EUR/USD Technical Analysis
On the daily chart, indicators suggest a bullish trend, with the RSI showing some weakness but not enough to signal a reversal. The 4-hour chart also supports a bullish bias, with all moving averages pointing upwards.
Support levels: 1.1050 1.1020 1.0985
Resistance levels: 1.1090 1.1120 1.1160
Analysis:
The EUR/USD pair is poised for further gains, supported by expectations of a Fed rate cut. Investors should monitor the upcoming Fed meeting Minutes for further insights into the central bank’s decision-making process. Overall, the current market conditions indicate a favorable environment for the Euro to continue its ascent against the US Dollar.