FX.co ★ dagistanieagle | EUR/USD

EURUSD Daily Outlook Fundamentally, the euro is under pressure from the European Central Bank (ECB) and the Federal Reserve’s monetary policy stance. The ECB remains cautious in its forecasts. Policymakers are raising the odds of a rate cut later this year, according to inflation-adjusted reported data, helping to keep the outlook for long-term rates on track. Market participants are closely watching upcoming economic reports, including eurozone inflation data and US GDP data, which could provide further guidance for the currency pair. Geopolitical risks and global risk sentiment also influence EUR/USD exchange rate decisions. Continued uncertainty over Europe’s economic recovery, external factors such as trade tensions between the US and China, and concerns about a slowdown in the global economy have weighed on the US dollar as a safe haven for investors. The EUR/USD pair is currently trading around the 1.0785 mark and has been volatile after the recent rally was met with selling pressure near the 1.0920 resistance area. Price action suggests that the pair initially followed an old trend line reaction as a potential support. The key support area at 1.0780 still holds but a decisive break below it could lead to deeper losses towards the 1.0675-1.0650 area, where a recovery attempt would require a move above the demand zone and 0.0860, after which sustained momentum would be maintained to retest 1.0920. Technical indicators are painting a mixed picture with the RSI fluctuating in the neutral zone without any clear direction at 54.14 while the Stochastic Oscillator is indicating a bearish trend after entering the oversold zone. While the moving averages are sending mixed signals, the longer-term averages are indicating that recent gains are drying up. Prices remain above the key 50-day exponential moving average (SMA), which coincides with the lower limit of the previous uptrend, highlighting the importance of this support area. If the current consolidation phase continues, traders should keep an eye on the potential range between 1.0780 and 1.0860 before a decisive breakout. A confirmation below 1.0780 would indicate a convergence of the next support level in the dialogue. Strong selling could push the pair down to the 1.0650 area and consolidate the broader downtrend. Conversely, a sustained recovery above 1.0860 would signal a resurgence in buying interest and if the bullish momentum strengthens, 1.1000 would emerge as the next key upside target. Moving forward, whether the currency pair can sustain above the support level at 1.0780 will be a key factor in determining the direction of its next move. If buyers can defend this area, a potential rally focusing on a key resistance level could occur, and the bearish momentum could increase and focus could shift to lower technical objectives. As the upcoming economic conditions are expected to cause increased volatility in the near future, traders should remain vigilant and adapt to changing market conditions.