Once again, the EUR/USD pair attempted a breakthrough above 1.09 yesterday, and was quickly pushed back below it, a scenario that has repeated itself many times over the past ten days.
Recall that the Euro Dollar reached a plateau on January 23, and has since settled in a range 1.0840-1.0930. However, this uncertain trend could clear up this week, when many macroeconomic events will be likely to influence the price of the currency pair.
With regard to the day of this Tuesday, we will be interested in particular in the unemployment figures in Germany at 9:55 a.m., before the GDP of the Euro Zone, at 11 a.m. EUR/USD traders will then be interested in the preliminary CPI from Germany at 2 p.m., while in the United States, the main indicator expected will be consumer confidence according to the Conference Board, at 4 p.m.
EUR/USD Traders Turn Their Attention to The Fed And The ECB
However, the wait-and-see attitude could still continue to dominate, knowing that the most important event of the week is due tomorrow evening, with the Fed’s rate decision at the end of the FOMC meeting which begins today. today.
The consensus is for the Fed to slow rate hikes to 25 basis points, but there is a lot of uncertainty about what signals the Fed will send next. In particular, if the Fed signals rate hikes will continue for a while, the Dollar could strengthen, and EUR/USD fall.
Conversely, if the slowdown in the Fed’s rate hike is accompanied by signals that the rate hike cycle is ending, the EUR/USD pair could climb to new highs.
But that’s not all, since the ECB will also be there this week, with a rate decision to be made on Thursday afternoon, which could also significantly influence the EUR/USD exchange rate.
Finally, from a graphical point of view, the area of 1.0840 is an immediate support, before the psychological threshold of 1.08. On the upside, 1.09 and the top of the range at 1.0930 are the first obstacles to take into account on EUR/USD, after which the threshold of 1.10 could be quickly reached.
This article is originally published on fr.investing.com