FX.co ★ Forecast for EUR/USD on October 31, 2023

EUR/USD

Yesterday, the euro showed its desire to rise on the day the Federal Reserve will announce its monetary policy decision. In a way, market participants are already aware of the central bank's decision since it was outlined by FOMC representatives—inflation is already close to target levels (core and overall CPI, personal consumption prices, purchase prices, etc.), and a high yield on government bonds is equivalent to a rate hike of 0.25-0.50%.

The pair has already reached the first resistance at the target level of 1.0613. Since the next target at 1.0640 is quite close, the entire range can be considered the target. If the price climbs above the upper band of this range (1.0640), the next target will be 1.0687. The euro could also rise towards the Fibonacci arc around 1.0730. A break above the arc would be a definitive sign of the euro's progress according to an upward movement in the medium-term.

On the 4-hour chart, the price has settled above the MACD line, and the Marlin oscillator has settled in the bullish territory. We are waiting for the price to consolidate within the target range of 1.0613/1.0640. If the price settles below the MACD line (below 1.0595), then the intrigue will continue.