Yesterday, central bank governors from France, Slovakia, and Latvia stressed that the chances of a rate cut at the next European Central Bank (ECB) meeting are high. After reaching a high of 1.0980 in the Tokyo market, the EUR/USD began to fall. In the New York market, the decline continued as U.S. long-term interest rates rose, pushing the euro lower, closing at 1.0936.
Germany’s government also announced its 2024 economic outlook yesterday, revising growth forecasts down from +0.3% to -0.2%. The forecast for two consecutive years of negative growth also contributed to selling pressure on the euro.
Today, the U.S. Consumer Price Index (CPI) will be released, and depending on the result, there could be a rise in U.S. long-term interest rates.
The euro has formed a double top pattern, and since it has broken below the neckline, selling momentum is strong. Be aware of the risk of further downward movement.
EUR/USD forecast range: 1.0970–1.0880 (76.4% retracement level).
*Please note that the above content does not guarantee profits, and you should make your own decisions when trading.