Daily Price Outlook

• EUR/USD pair starts the day on a negative note, breaking the intraday bullish trend line and targeting a decline towards 1.0745.
• Today’s trading outlook suggests a bearish bias as the price remains below the EMA50.
• Traders should expect a trading range between 1.0730 support and 1.0875 resistance for today’s session.

The EUR/USD pair kicked off today’s trading session with a clear negative tone, breaking the intraday bullish trend line. The focus now turns to the expected decline, with an initial target set at 1.0745.

Traders should closely monitor the price action at this level, as a break below it could extend the bearish momentum, potentially leading to a test of the 1.0630 region as the next major support zone.

Today’s trading outlook suggests a bearish bias, supported by the price trading below the EMA50. However, if the pair manages to breach the 1.0870 level, it could halt the negative scenario and pave the way for a resumption of the main bullish wave.

Traders should anticipate a trading range between support at 1.0730 and resistance at 1.0875 for today’s session. Overall, the expected trend for today is bearish.

EUR/USD Price Chart – Source: Tradingview

EUR/USD – Trade Idea

Entry Price – Sell Below 1.0688

Stop Loss – 1.07197

Take Profit – 1.06348

Risk to Reward – 1 : 1.75

Profit & Loss Per Standard Lot = +$540/ -$309

Profit & Loss Per Micro Lot = +$54/ -$30

Daily Price Outlook

The EUR/USD pair has bounced back strongly, forming a V-shaped recovery after finding support above 1.0700 in the European session. The recovery is mainly driven by a notable decline in the US Dollar, which keeps the EUR/USD currency pair higher.

Investors are uncertain about the possibility of another interest rate hike by the Federal Reserve (Fed), which has restricted the upward movement of the USD.

As of now, the EUR/USD pair is trading at 1.0719 and is consolidating within the range of 1.0669 to 1.0720.

Cautious Investor Sentiment and Positive Market Mood

The global market sentiment has been flashing mixed signals as investors are adopting a cautious stance ahead of Fed’s Monetary Policy decision. It is worth mentioning that the probability of the Fed announcing a pause in its interest rate policy is increasing, with over 73% chance.

This is mainly driven by the poor economic prospects of the United States, as indicated by seven consecutive monthly contractions in factory activity and challenges faced by the service sector.

This news has contributed to the EUR/USD pair’s strength and its ability to rebound, as investors anticipate a potentially more dovish stance from the Fed, favoring the euro over the US dollar.

Eurozone Economic Turmoil and Mixed German Industrial Figures

On the negative side, the Eurozone is facing economic challenges, resulting in credit rating downgrades. Germany, the largest economy in the Eurozone, is currently in a recession with declining Gross Domestic Product (GDP) over the past two quarters and slow factory activity.

Thus, the combination of weak economic performance and high inflation poses difficulties for the entire region, which was seen as a key factor that kept the lid on any additional gains in the EUR/USD pair.

In a positive development, recent data highlights a potential recovery in Germany’s manufacturing sector through a notable increase in industrial production. In April, industrial output rose by 0.3% compared to the previous month, exceeding market expectations.

This positive development brings hope and optimism to Germany’s manufacturing industry, suggesting a favorable trend in its overall economic performance.

As market sentiment responds positively to this improving economic outlook in Germany, it could potentially lead to further gains in the EUR/USD pair.

EUR/USD Price Chart – Source: Tradingview

EUR/USD – Technical Outlook

The EUR/USD pair initiated today’s trading session with a distinct bearish sentiment, breaking the previously established intraday bullish trend line. As a result, market focus shifts towards an anticipated decline, with an initial target set at 1.0745.

It is crucial for traders to closely observe the price action at this level, as a breach below it could prolong the bearish momentum, potentially leading to a test of the 1.0630 region, which serves as the next significant support zone.

Today’s trading outlook maintains a bearish bias, supported by the pair trading below the EMA50. However, if the EUR/USD manages to surpass the 1.0870 level, it could halt the negative scenario and facilitate a resumption of the primary bullish wave.

Traders should anticipate a trading range between the support level at 1.0730 and the resistance level at 1.0875 for today’s session. Overall, the expected trend for today remains bearish.

Daily Price Outlook

• The EUR/USD pair displays a somewhat bullish trend, having found significant support at the 1.0706 level.
• A possible hurdle at the 1.0740 level might impede its progress, while a breach above this level could lead to the 1.0760 mark.
• With the Euro trading within the range of 1.0706 and 1.0760, we can expect a choppy session. A break below 1.0706 could provide a shorting opportunity.

On the technical front, the EUR/USD currency pair is exhibiting a somewhat bullish trend after finding significant support around the 1.0706 level. At present, the Euro has climbed above the 50-day exponential moving average (EMA), which is now providing it with additional support at the 1.0717 level.

A hurdle may be encountered around the 1.0740 level, which is extended by a downward trending line visible on the four-hour timeframe.

A bullish breach above the 1.0740 level has the potential to guide the EUR/USD pair towards the 1.0760 level. However, one could say that the EUR/USD pair is currently operating within a narrow trading range, with an upper boundary at the 1.0760 level and a lower boundary at the 1.0706 level. As long as the EUR/USD pair remains within this specific range, we can anticipate a choppy session.

Nevertheless, if the Euro manages to break below the 1.0706 level, we may have an opportunity to short the EUR/USD pair. For now, it is crucial to keep a close watch on the 1.0700 level; a breach below this could offer another opportunity to short the EUR/USD pair.

EUR/USD Price Chart – Source: Tradingview

EUR/USD - Trade Idea

Entry Price – Sell Below 1.0750

Stop Loss – 1.0779

Take Profit – 1.0680

Risk to Reward – 1: 2.40

Profit & Loss Per Standard Lot = +$700/ -$295

Profit & Loss Per Micro Lot = +$70/ -$29

Daily Price Outlook

EUR/USD, which recently hit multi-week lows just above the key 1.0700 level, has since stabilized and is trading in the low-1.0700s on Monday. This recovery can be attributed to the overall lack of market direction and the Memorial Day holiday in the US, leading to limited trading activity and volatility.

Despite the agreement on the USD debt ceiling, the FX market has shown minimal response thus far. However, European stock markets have opened on a positive note.

Investors remain hopeful that the agreement to raise the US debt ceiling will gain approval from a divided Congress, thereby averting a potential government default. This positive sentiment has provided some support for the euro.

Key factors to monitor for the euro include the price action around the 1.0700 area in EUR/USD and the contrasting approaches of the Federal Reserve (Fed) and the European Central Bank (ECB) regarding their interest rate plans.

Looking ahead, any hawkish statements from the ECB could bolster expectations for further rate hikes, although specific regional economic indicators have shown a loss of momentum.

EUR/USD Price Chart – Source: Tradingview

EUR/USD – Technical Outlook

On the technical side, the EUR/USD currency pair is displaying a somewhat bullish trend following substantial support found around the 1.0706 level. Currently, the Euro has surpassed the 50-day exponential moving average (EMA), which is now acting as additional support at the 1.0717 level.

A potential hurdle is anticipated around the 1.0740 level, marked by a descending trendline visible on the four-hour timeframe.

If the EUR/USD pair successfully breaks above the 1.0740 level, it has the potential to reach the 1.0760 level. However, it should be noted that the pair is currently trading within a narrow range, bounded by 1.0760 on the upside and 1.0706 on the downside. While the pair remains within this range, we can expect a volatile trading session.

Nevertheless, if the Euro falls below the 1.0706 level, there may be an opportunity to short the EUR/USD pair. It is important to closely monitor the 1.0700 level, as a breach below it could present another opportunity to initiate a short position on the EUR/USD pair.

Daily Price Outlook

• EUR/USD focuses on Germany’s business climate economic event and the release of the FOMC meeting minutes.
• A descending triangle pattern on the four-hour timeframe suggests support at 1.076 and the potential for bearish movement.
• Breaking above 1.0800 could lead to resistance at 1.0825 or 1.0860, while breaching 1.0760 may target 1.0720.

Good morning everyone, today holds significant events for the EUR/USD currency pair. The European economy is expected to release Germany’s business climate economic event, which is projected to decrease to 93 from the previous figure of 93.6. This suggests a potential slight variation in the euro’s strength against the US dollar.

However, the major focus will be on the release of the FOMC meeting minutes, as they are expected to provide insights into the stance of the US central bank. Depending on the clues provided, the EUR/USD pair will determine its upcoming direction.

From a technical standpoint, the EUR/USD has formed a descending triangle pattern on the four-hour timeframe, which indicates a potential support level around 1.076. A breakthrough of the lower support level could trigger a bearish move in the currency pair.

On the other hand, if the EUR/USD manages to surpass the 1.0800 level, it may target resistance levels at 1.0825 or 1.0860. Conversely, if the EUR/USD breaches the 1.0760 support level, the next target could be around 1.0720.

Today’s strategy is to closely monitor the 1.076 level. A break below this level could trigger selling pressure, while staying above it may suggest further upside potential for the EUR/USD pair.

EUR/USD Price Chart – Source: Tradingview

EUR/USD - Trade Idea

Entry Price – Buy Above 1.07611

Stop Loss – 1.07129

Take Profit – 1.08594

Risk to Reward – 1 : 2

Profit & Loss Per Standard Lot = +$983/ -$482

Profit & Loss Per Micro Lot = +$98/ -$48

Daily Price Outlook

In the early European session, the EUR/USD pair has extended its recovery above the key resistance level of 1.0780, supported by a weakening US Dollar Index (DXY) trading below 103.50. The pair initially bounced back after testing levels near 1.0760, as the USD Index faced significant resistance in its upward recovery above last week’s high at 103.62.

S&P500 futures have maintained their gains from the Asian session and edged higher during early London trading, indicating a slight improvement in risk sentiment among market participants. However, US indices experienced a sharp decline on Tuesday as investors reduced their holdings in technology equities.

Investors remain concerned about the US debt-ceiling issues and the delayed response from US President Joe Biden, which has raised fears of a potential government default.

In the EUR/USD pair, the focus today is on the speeches by ECB President Lagarde, upcoming economic data releases, and developments related to the US debt ceiling.

After a significant pullback on Tuesday, the EUR/USD pair has resumed its upward movement and aims to surpass the recent monthly lows around 1.0760 on Wednesday. Additionally, the release of the FOMC Minutes from the May meeting will be followed by the weekly MBA Mortgage Applications report, which are typically released in the US.

EUR/USD Price Chart – Source: Tradingview

EUR/USD – Technical Outlook

From a technical perspective, the EUR/USD has formed a descending triangle pattern on the four-hour timeframe, indicating a potential support level around 1.076. A breakthrough below this support level could initiate a bearish move for the currency pair.

Alternatively, if the EUR/USD successfully surpasses the 1.0800 level, it may aim for resistance levels at 1.0825 or 1.0860. Conversely, breaching the 1.0760 support level could lead to a target around 1.0720.

Today’s strategy involves closely monitoring the 1.076 level. A break below this level could trigger selling pressure, while maintaining above it suggests the possibility of further upside potential for the EUR/USD pair.