(MENAFN- Daily Forex) Bullish view

• Buy the EUR/USD pair and set a take-profit at 1.1825.
• Add a stop-loss at 1.1550.
• Timeline: 1-2 days.

Bearish view

• Sell the EUR/USD pair and set a take-profit at 1.1550.
• Add a stop-loss at 1.1825.

The EUR/USD exchange rate remained on edge on Wednesday as market participants reacted to the latest firing of Lisa Cook, a Federal Reserve governor, and after the US published weak economic numbers. It dropped to 1.1640, down from this week's high of 1732 Trump Fires Lisa Cook

The EUR/USD exchange rate pulled back as investors reacted to the latest issue between the White House and the Federal Reserve.

President Donald Trump fired her, citing her two mortgages, which Trump believes is a crime worth her firing.

The EUR/USD pair reacted mildly to the firing because Cook has vowed to sue to stop her firing, and most analysts believe that she has a solid case.

Meanwhile, the Conference Board published a weak consumer confidence report that showed the impact of Donald Trump's tariffs on the economy. The data showed that confidence dipped this month to 97.4 from the previous month's 98.7.

Consumers are mostly worried about the labor market, which has stalled this year, and consumer inflation, which has continued rising in the past few months. The unemployment rate has jumped to 4.2%, while the core inflation rose to 3.1% in August.

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The US also published another set of housing data, which showed that the house price index (HPI) dropped to minus 0.2% on a MoM basis, translating to a 2.6% annualized growth.

Looking ahead, the next important catalyst for the EUR/USD exchange rate will be the latest European consumer and business confidence data, which normally plays a modest role when the European Central Bank (ECB) is delivering its monetary policy decision.

There will be no macro data from the US today, meaning that investors will continue to focus on the upcoming numbers, such as the second quarter GDP, July pending home sales, and Friday's personal consumption expenditure (PCE) report.

EURUSD Chart by TradingViewEUR/USD Technical Analysis

The EUR/USD exchange rate remained in a tight range on Wednesday, down slightly from this week's high of 1.1740.

On the positive side, the pair remains above the 50-day Exponential Moving Average (EMA), a sign that bulls are in control.

The pair has formed an inverse head-and-shoulders pattern, which often leads to further gains over time.

Therefore, the EUR/USD exchange rate will likely continue rising as bulls target the year-to-date high of 1.1825. A move above that level will point to more gains, potentially to the psychological level at 1.200 later this year.

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