On Monday, the US dollar remains under local pressure and is hovering around 1.0875.
Earlier, the head of the Federal Reserve, Jerome Powell, spoke very cautiously about further changes in the interest rate. He said the risks of excessive or insufficient tightening are now more balanced.
The market interpreted his tone as “dovish,” i.e., too soft. Investors probably concluded that the Fed would stop raising the interest rate.
At the same time, Powell highlighted that the Federal Reserve was ready to continue tightening the monetary policy if this seemed reasonable.
According to market assessments, the Fed acted correctly and can afford to wait, neither raising nor decreasing the interest rate.
EUR/USD technical analysis
On the EUR/USD H4 chart, a decline impulse to 1.0828 has been completed. By now, the market has corrected to 1.0894. A consolidation range is forming under this level today. With an escape from the range downwards, the trend might continue to 1.0727; with an escape upwards, a correction to 1.0913 is not excluded (with a test from below). Next, a decline to 1.0807 could follow. Technically, this scenario is confirmed by the MACD: its signal line is above zero, aimed strictly downwards.
On the EUR/USD H1 chart, the quotes have reached the local target of a decline wave at 1.0828. Today, the market has performed a growth link to 1.0885. A consolidation range is forming around this level. With an escape from this range upwards, a correction to 1.0911 might follow. Next, the decline wave might continue to 1.0808 (at least). This is the first target. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 50 and might drop to 20.
By RoboForex Analytical Department
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
By RoboForex Analytical Departme
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The US dollar appears strong
Published 04/12/2023, 14:06
Updated 15/02/2024, 08:13
The US dollar appears strong
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