EUR/USD Analysis Today 29/5: Bulls Need Stimulus (Chart)

(MENAFN- Daily Forex) In an attempt to further rebound the EUR/USD price, the pair rose towards the 1.0889 resistance level yesterday before stabilizing around the 1.0850 level at the time of writing the analysis, the euro is waiting for the announcement of the German inflation figure today the same time, the US dollar remains bullish in anticipation of the future tightening of the federal Reserve\u0026#39;s policy is expected for the EUR/USD price in the coming days?In this regard, according to Danske Bank, although the narrow ranges will continue at first, there will be some signs of weakness in the US Economy and the recovery of the Eurozone may lead to slight risks to the upside of the Euro/Dollar (EUR/USD) exchange rate. Now, markets expect less than a 20% chance of a US interest rate cut in July. However, Danske Bank believes that a reduction in July may still be possible and notes that the influx of US data indicated some weakness in the economy. Furthermore, the latest PCE price data at the end of May as well as the ISM Business Confidence and latest employment report in early June are expected to be critical, there are two more releases on inflation ahead of the July meeting to licensed trading platforms, the EUR/USD currency pair reached its highest level in 8 weeks below the 1.09 level last week before drifting to 1.0835. obviously, EUR/USD has only traded above 1.10 twice this year and Danske Bank expects heavy selling at any approach to 1.10. Looking at interest rates, Danske expects the Fed to cut rates by 25 basis points at its September policy meeting, with further easing in December for the European Central Bank, it agrees with the strong market view that interest rates will be cut in June and expects two more cuts before the end of 2024. Also, the bank said in its forecast, \u0026quot;We still believe that fundamentals point to a medium-term decline in EUR/USD, including the structural case for stronger growth dynamics in the US.\u0026quot; Added, \u0026quot;In the near term, we believe there is downside risk to US yields, posing a slight upside risk to EUR/USD; however, we generally believe the pair will continue to trade in a tight range in the near term. Thus, continued downside surprises in the US macro economy could lead to some tactical weakness in the US dollar, but we believe the potential is somewhat limited.\u0026quot; Top Forex Brokers 1 Get Started 74% of retail CFD accounts lose money Read Review BrokerGeoLists({ type: \u0027MobileTopBrokers\u0027, id: \u0027mobile-top-5\u0027, size: 5, getStartedText: \u0060Get Started\u0060, readReviewText: \u0060Read Review\u0060, }); var Top5PanelSections = { Logo: \u0027broker_carrousel_i\u0027, Button: \u0027broker_carrousel_n\u0027, }EUR/USD Technical analysis and forecast:We expect the EUR/USD exchange rate to remain within its current range until the announcement of the US inflation figures favoured by the Federal Reserve and the Eurozone inflation figures. According to the daily chart performance attached, the 1.080 support level remains crucial for the bears to move further downward. Conversely, the bulls will not gain significant control of the trend without moving towards the resistance levels of 1.0890 and 1.0955, which would encourage a push towards the psychological resistance at 1.1000. Ultimately, the strategy of selling the EUR/USD remains the strongest.


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