USD Forecast – EUR/USD, USD/JPY
- USD After last week’s steep decline, it found stability and rebounded slightly on Monday.
- America in the future inflation This report will play a pivotal role in shaping the short-term trajectory of the market.
- This article focuses on the following technical perspectives: euro/usd and USD/JPY
Most read: USD Forecast – US CPI will trigger the next big move – EUR/USD, USD/JPY, GBP/USD
The US dollar gained footing on Monday, ending a losing streak that pushed the DXY index to its lowest since January on Friday. Leading up to today’s modest rebound, the dollar had been steadily losing ground as US yields fell on expectations that the FOMC would begin easing soon.
Last week, Fed Chairman Jerome Powell appeared before Congress and said policymakers needed “a little bit more evidence” that inflation was on a sustained path toward 2.0, and said policymakers needed “a little more evidence” that inflation was on a sustained path toward 2.0. suggested that it was likely appropriate to begin reducing inhibitions. % before pulling the trigger.
Powell’s comments, coupled with mixed U.S. jobs data that showed a slight rise in the unemployment rate in February, strengthened expectations that the central bank’s first interest rate cut of the economic cycle will be implemented in June, which could lead to a weaker U.S. currency. This was an event that strengthened the decline.
Will the US dollar start to rebound or continue to fall? Request quarterly forecasts.
Recommended by Diego Coleman
Get Free USD Forecast
Although the outlook for the US dollar has become more negative in recent days, traders should not completely rule out the possibility of a pullback. That said, one potential catalyst that could cause a bullish turn is the U.S. Consumer Price Index report scheduled to be released on Tuesday morning.
Upcoming US CPI data
sauce: DailyFX Economic Calendar
According to forecasts, headline CPI is expected to remain flat year-on-year at 3.1% in February. At the same time, the core index, which excludes energy and food components, is expected to slow slightly to 3.7% from his previous 3.9%.
In terms of likely outcomes, better-than-expected inflation data reflecting January’s upside surprise should put a dent in the easing narrative and prompt Wall Street to reassess the likely timing of a rate cut by the FOMC. This situation will be positive for the US dollar.
Conversely, if the CPI number were significantly lower than consensus expectations, the market reaction should be the opposite. This scenario would strengthen the view that a cut in interest rates is imminent, lowering bond yields in the process and boosting the dollar.
Access extensive analysis of. EUR/USDOur fundamental and technical outlook is included in our quarterly forecast. Download the guide now and get valuable insights!
Recommended by Diego Coleman
Get free euro predictions
EUR/USD Forecast – Technical Analysis
EUR/USD fell slightly on Monday, falling back towards the 1.0900 handle. If losses accelerate in the coming days, support will approach 1.0890. Below this area, attention is focused on 1.0850, where multiple moving averages intersect with a large uptrend line.
On the other hand, if buyers return and reestablish dominance, the price could rise towards 1.0980. The market reaction at this point will be critical, as a breakout could pave the way for a rally towards 1.1020. The strength then shifts focus to 1.1075.
EUR/USD price action chart
EUR/USD chart created using TradingView
I want to know what the future holds for USD/JPY• Dig into quarterly trading forecasts for expert insights.? Get your free copy now!
Recommended by Diego Coleman
Get Free JPY Forecast
USD/JPY Forecast – Technical Analysis
USD/JPY extended its decline on Monday, falling towards confluence support at 146.50-146.00. This range marks the convergence of the major trend lines, the 200-day simple moving average, and the February swing low. Future additional losses will attract attention at the 145.00 level.
On the other hand, if buyers strengthen the rally and cause a pullback, we can expect resistance near 147.50. Once this technical ceiling is crossed, all eyes will be on 148.90. Moving forward, market attention could turn to 149.70 and then 150.90.
