After falling below the neckline at 1.1 dollars, the EUR/USD (euro/dollar) rate experienced some buying and recovered to 1.0997 dollars yesterday. However, it couldn’t rise above the neckline and has been pushed down again. Yesterday, central bank governors from Latvia, Slovenia, Germany, and Portugal indicated a positive attitude toward lowering interest rates, making further rate cuts seem almost certain. Meanwhile, with the strong U.S. economy, expectations of large interest rate cuts by the U.S. Federal Reserve (FRB) are decreasing, which is continuing to put selling pressure on the euro.
If the U.S. Consumer Price Index (CPI), released today, strengthens the dollar further, it could signal a restart of euro selling.
EUR/USD expected range: 1.1000 to 1.0940 (50%).
Note: The above information does not guarantee profit, so please make your own decisions when trading.