EUR/USD: Market Analysis and Outlook
EUR/USD faced resistance above 1.1200 as the US Dollar rebounded and tested two-day highs, prompting a decline towards 1.1110 at the end of Monday’s session.
Fed’s Chair Powell’s Insights
- Fed Chair Powell predicts an additional 50 basis points of easing this year.
- Uncertainty lingers post-FOMC meeting regarding potential rate cuts.
Central Bank Policies
While the Fed contemplates further easing, the ECB has already taken steps to ease monetary policy, influenced by inflation and economic conditions. ECB President Christine Lagarde remains cautious in her approach.
Market Expectations
- Markets anticipate more rate cuts from the ECB and Fed, potentially narrowing the policy gap.
- Long-term outlook favors the US economy over Europe, potentially limiting USD weakness.
EUR/USD Technical Analysis
Short-term outlook for EUR/USD:
- Resistance levels at 1.1214 and 1.1275.
- Support levels at 1.1019, 1.1001, and 1.0881.
Key technical indicators suggest a resurgence of negative sentiment, with RSI around 45.
Overall, the market remains dynamic with potential for further developments based on central bank actions and economic data.