Yesterday, the euro reached $1.0901 ahead of the ECB (European Central Bank) meeting. However, the euro faced resistance and fell back to $1.0854, dropping below the 200-day moving average. This decline happened even though U.S. long-term interest rates were falling, which usually would support the euro, but the euro continued to weaken.
At today’s ECB meeting, a 0.25% interest rate cut is expected, but this has already been anticipated by the market. As a result, there hasn’t been much buying of the euro. However, if the ECB’s statement or President Lagarde makes cautious comments about further interest rate cuts, we might see a quick rebound in the euro, so it’s something to watch closely.
EUR/USD Forecast Range: 1.0950 to 1.0835
Please note that the above information does not guarantee profits. Make sure to make your own decisions when trading.