EUR/USD Analysis Today 17/6: Bearish Momentum (Chart)

(MENAFN- Daily Forex) The EUR/USD pair came under pressure last week following the French elections, where President macron called for early parliamentary elections after losing to the far-right National Rally party in the European vote a result, the EUR/USD plummeted to a support level of 1.0667, its lowest level in over a month, it is hovering around 1.0710 at the start of trading this week\u0026#39; Views on EUR/USD\u0026#39;s Short-Term OutlookForex market analysts at MUFG bank see the risk of the euro exchange rate falling against the US dollar (EUR/USD) to 1.05 amid Political concerns in the eurozone. For its part, Scotiabank sees that the euro/dollar pair EUR/USD will face difficulties in the short term before rising to 1.15 by the end of 2025. MUFG Bank commented; \u0026ldquo;The widening spread in 2017 was 76 basis points (on a closing basis) which coincided with the EUR/USD falling to around 1.0600. This is certainly very achievable and if the risks rise significantly, we could certainly see EUR/USD testing 1.0500 in the coming weeks to HSBC, concerns over France\u0026rsquo;s budget deficit are growing in the context of a potential legislative takeover by the far-right National Rally party, with Finance Minister Bruno Le Maire warning that France could be pushed into a debt crisis if the National Rally continues with its economic programme.\u0026rdquo; Added, \u0026ldquo;For the euro, political concerns seem likely to persist and there is little sense of market appetite for this move to fade. We maintain an open trade to sell EUR/USD, with a target of 1.0550.\u0026rdquo;However, ING Bank does not expect any near-term relief, saying, \u0026quot;European politics seem set to be the dominant driver of FX markets this month. This means that international investors will need a lot of convincing not to hold onto the dollar.\u0026quot; It added, \u0026quot;It seems clear that given the French political risks, EUR/USD is not going to see any further dollar-driven declines.\u0026quot;Credit Agricole had suggested that political uncertainty could undermine the economy and raise fresh concerns about the prospects for fiscal and political integration in the eurozone. Last week, The US Federal Reserve left interest rates at 5.50% at its last policy meeting, in line with consensus expectations. Meanwhile, US Fed Chairman Jerome Powell continued to warn that interest rates could not be cut until there is more convincing evidence that inflation is moving towards its 2% target. Inflation data was more positive, with the annual core consumer price rate falling to 3.4% from 3.6% and below expectations of 3.5%.Danske Bank commented, \u0026ldquo;The Fed remains dovish, and Powell stressed the need to remain mindful of downside economic risks as well. We remain happy to call for two 25bp rate cuts this year, followed by four more in 2025. Also, \u0026ldquo;We believe EUR/USD will trade around 1.08 in the near term, but in the longer term, we believe the structural case for stronger US growth dynamics will push the pair lower towards 1.05/1.03 on the 6/12-month horizon.\u0026rdquo;JP Morgan, for its part, expects some flexibility in the euro. Berenberg commented, \u0026ldquo;A larger sell-off towards 1.03 would require the US and EMU inflation paths to diverge further or disrupt the EMU growth momentum again,\u0026rdquo;\u0026ldquo;For the summer, we expect EUR/USD to continue trading within this trading range with low volatility and no movement outside the trend channel is expected,\u0026rdquo; he added. If the EUR/USD pair breaks in one direction, the next support is at 1.0450 (12-month low) and the next resistance is at 1.1140 (6-month high).\u0026rdquo;The bank expects the eurozone economy to gradually strengthen, but pointed to the international dimension. added in this context; \u0026ldquo;\u0026quot;Geopolitical risks such as US-China tensions over Taiwan could resurface at any time and are always present. In times of uncertainty, investors seek safe havens like the US dollar. However, alongside higher interest rates for longer, we believe that significant US dollar weakness above 1.1000 by end-2024 is unrealistic\u0026rdquo;. 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:According to the performance on the daily chart above, the EUR/USD price path is still bearish. We have noted this since it crossed below the 1.0800 level, and attention is now turning to the political path in the Eurozone as well as the future of central bank policies after the recent decisions. Furthermore, we expect the EUR/USD price to remain bearish in the coming days until confidence returns in the European political situation.

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