The EUR/USD pair is trading within a narrow range, facing mixed influences from various factors.
The US Dollar weakens as the Fed projects three rate cuts in 2024, supporting the pair.
Euro bulls face pressure due to increasing expectations of a June ECB rate cut.
EUR/USD is having difficulty building momentum after bouncing from a three-week low near the 1.0800 level, remaining range-bound during the Asian trading session on Tuesday. Currently, the pair hovers around 1.0840, showing minimal daily movement and primarily responding to US Dollar (USD) market dynamics.

Despite optimism surrounding US economic growth, the USD Index (DXY), which measures the Dollar against other currencies, struggles to gain traction amid uncertainty over the Federal Reserve’s (Fed) rate-cut trajectory. While the Fed indicated last week its intention to cut interest rates by 75 basis points this year, some Fed officials expressed concerns about persistent inflation and robust US economic data. This uncertainty prevents traders from taking significant positions on the USD, leading to subdued trading in the EUR/USD pair.

On the other hand, the Euro faces pressure from expectations of an ECB rate cut in June. Bank of Italy Governor Fabio Panetta mentioned Monday that the ECB is considering lowering interest rates as inflation rapidly declines towards the 2% target. Additionally, ECB chief economist Philip Lane highlighted the possibility of reversing interest rates once there is confidence in slowing wage growth and a return to the 2% inflation target. These factors restrain the EUR/USD pair from making significant upward movements.

Traders are now awaiting the release of critical US economic data, including Durable Goods Orders, the Consumer Confidence Index, and the Richmond Manufacturing Index, which could influence demand for the safe-haven USD and provide direction to the EUR/USD pair. However, attention will remain focused on Friday’s release of the US Personal Consumption and Expenditure (PCE) Price Index, which is crucial as the Fed’s preferred inflation measure.


Today last price1.084
Today Daily Change0.0003
Today Daily Change %0.03
Today daily open1.0837
Daily SMA201.0878
Daily SMA501.0841
Daily SMA1001.0871
Daily SMA2001.0838
Previous Daily High1.0842
Previous Daily Low1.0802
Previous Weekly High1.0942
Previous Weekly Low1.0802
Previous Monthly High1.0898
Previous Monthly Low1.0695
Daily Fibonacci 38.2%1.0827
Daily Fibonacci 61.8%1.0818
Daily Pivot Point S11.0812
Daily Pivot Point S21.0787
Daily Pivot Point S31.0772
Daily Pivot Point R11.0852
Daily Pivot Point R21.0868
Daily Pivot Point R31.0893

Related Post