Last week, the euro dropped from around 1.05 to 1.04 due to concerns over the U.S.-Russia talks on ending the Ukraine conflict. However, it later rebounded as weak U.S. economic data caused long-term interest rates to fall, pushing the euro back above 1.05. Still, it could not break past the previous week’s high and closed lower.
The euro remains under pressure due to uncertainties like the Ukraine situation and Germany’s general election. However, since most negative news seems to have already been factored in, the euro is showing signs of stability.
If the upcoming U.S. PCE Deflator shows a slowdown as expected, U.S. long-term interest rates may drop further, supporting the euro. If the euro breaks above the double top around 1.05, it could trigger more buying and push prices higher.
This Week’s EUR/USD Forecast Range: 1.0560 – 1.0380
Note: This information does not guarantee profits. Please make your own trading decisions.