FX.co ★ Forecast for EUR/USD on June 8, 2023

EUR/USD:

Wednesday's main event was the Bank of Canada's decision to raise the benchmark interest rate by 0.25% to 4.75%, contrary to market expectations of no change. Yesterday, we mentioned that the Bank of Canada's rate hike would signal a potential rate increase by the Federal Reserve in the upcoming meeting. The markets closed with mixed results.

The euro continues its sideways movement within the range of 1.0692. The Marlin oscillator is strengthening its upward momentum, making every effort to push the price above the upper limit of the range at 1.0738. However, there are no fundamental reasons to rise towards 1.0804, and with less than a week until the Fed's decision, if the price breaks above 1.0738, it is most likely to be a false breakout. Consolidating support below 1.0692 opens the path towards 1.0607.

On the 4-hour chart, the sideways trend continues across all indicators. The MACD line is flat, and the Marlin is moving in a wave-like manner along the zero neutral line. We are waiting for further developments.