The couple is in a trend down, approaching 1,0829 on Friday as investors evaluate the latest developments.
Key drivers behind the EUR/USD movement
On Wednesday, he maintained his current interest rate and the general framework of monetary policy without changes. However, the Central Bank said that two rates cuts could be expected at the end of this year. In his comment, the Fed highlighted the growing risks for economic recovery, the stability of employment and inflation trends.
The president of the FED, Jerome Powell, minimized concerns on the inflationary impact of tariffs imposed by the Trump administration, describing them as temporary. Powell also emphasized that the Fed would not rush more feats, reinforcing a cautious approach to monetary flexibility.
In addition to the uncertainty of the market, Trump’s retaliation rates, which are addressed to countries that have imposed tariffs on US goods, will enter into force on April 2. In the last 24 hours, it has been strengthened amid fears of slowing down global economic growth and increasing commercial tensions. These factors have reinforced the feeling of risk restructuring among investors.
EUR/USD technical analysis
In table H4, EUR/USD decreased to 1,0815, followed by a 1860 correction. It is very likely that a greater decrease towards 1,0765 will be very likely, with this level the main objective. The MACD indicator supports this scenario. Its signal line is below zero, tilting sharply down, indicating possible new minimums.
In Figure H1, EUR/USD crossed the level of 1,0864 and formed a structure of bearish waves, reaching 1,0815. Today, a corrective movement towards 1,0860 (tests from below) is likely. Once this correction concludes, the torque could resume its trajectory down, aimed at 1,0811. This movement marks the third wave of the bearish trend. After reaching this level, another setback is possible towards 1,0864. The stochastic oscillator admits this perspective, with its signal line below 20 and upward trend towards the level of 50.
Conclusion
The EUR/USD pair remains under pressure when the cautious posture of the Fed and global commercial tensions reinforce the US dollar. The technical indicators suggest greater downward potential, with key support levels in 1,0765 and 1,0811. Investors must monitor the next economic data and commercial developments to obtain additional information about the direction of the couple.
By analytical department of Roboforex
Discharge of responsibility
Any forecast contained in this document is based on the author’s particular opinion. This analysis may not be treated as commercial advice. Roboforex has no responsibility for commercial results based on commercial recommendations and reviews contained in this document.
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