EUR/USD Price Forecast: 1.0942 Ahead of CPI Data & Fed Rate Decisions
In today's EUR/USD price forecast, the currency pair maintains its upward trajectory, trading around the 1.0950s in the early Asian
In today’s EUR/USD price forecast, the currency pair maintains its upward trajectory, trading around the mid-1.0900s in the early Asian session on Monday. This follows the release of US February Nonfarm Payrolls data last Friday, which highlighted a robust labor market, potentially influencing the Federal Reserve’s timing on interest rate cuts. As a result, the Greenback has softened against the Euro, with EUR/USD currently at approximately 1.09343, marking a slight increase of 0.06%.
US Labor Market Shows Strength
February saw the addition of 275,000 jobs, surpassing January’s figures and expectations, as reported by the US Bureau of Labor Statistics. However, the unemployment rate edged up to a two-year peak of 3.9%, and wage growth slightly decelerated. Fed Chair Powell signaled a cautious approach to rate cuts in his Senate Banking Committee address, noting the need for more confidence in the economic outlook.
ECB’s Stance Remains Unchanged
Last week, the European Central Bank held interest rates steady, with President Lagarde calling for further data before considering rate reductions. Meanwhile, Eurozone GDP data indicated marginal growth, underscoring the cautious economic environment in Europe.
Upcoming Economic Events to Watch
This week, traders will closely monitor the release of February CPI data from the US and Germany, along with US Retail Sales figures. These indicators could provide insights into future Federal Reserve rate decisions, potentially impacting EUR/USD price movements.
As we navigate through these economic developments, the EUR/USD price forecast remains closely tied to central bank policies and macroeconomic indicators. Investors and traders will be keenly watching the upcoming data releases for clues on the currency pair’s direction.
EUR/USD Price Forecast: Technical Outlook
In today’s technical outlook for EUR/USD on March 11, the pair is observed at $1.09343, marking an ascent of 0.89%. The pivot point stands at $1.0981, indicating potential directional movements. Resistance levels are set at $1.1060, $1.1137, and $1.1215, while support levels are identified at $1.0894, $1.0803, and $1.0697.
The Relative Strength Index (RSI) at 64 suggests a growing momentum, potentially leaning towards overbought conditions. The 50-Day Exponential Moving Average (EMA) at $1.0846 shows the currency pair has surpassed its short-term average, suggesting a bullish sentiment. However, a noted resistance along the downward trendline at approximately $1.09812 and the formation of a spinning top candle on the daily timeframe may hint at upcoming selling pressure.
The overall trend remains bullish above $1.0981, but a breach below this critical juncture could trigger a sharp sell-off, underlining the delicacy of current market dynamics.
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