Browsing: EUR/USD Forecast

  • EUR/USD remains under selling pressure.
  • Fed’s dovish tone couldn’t help bulls in EUR/USD.
  • Further decline towards the 1.17 region can be expected.

On Friday, the EUR/USD forecast remained inclined to decline all day. The dynamics of EUR/USD were influenced by macroeconomic reports from the Eurozone.

-Are you interested to find high leverage brokers? Check our detailed guide-

According to final data from the European statistical agency Eurostat, the consumer price index rose 0.3% in June. As a result, annual inflation in June slowed to 1.9% from 2% a month earlier. The indicators coincided with the forecasts of experts. The core consumer price index (excluding food and energy) was 0.3% m/m and 0.9% y/y, in line with market expectations.

Despite all the efforts of Jerome Powell, who voiced dovish rhetoric in Congress, the Greenback stayed afloat and showed character, strengthening his position throughout the market on Friday.

The immediate reason for the southern impulse of the EUR/USD was the release of retail sales data in the United States. The published figures came out in the green zone, significantly exceeding the forecasted values. Thus, the total volume of retail trade in June increased by 0.6% m/m, while experts had predicted its decline by 0.4%. Excluding car sales, the indicator showed a stronger result, rising by 1.3% (against the growth forecast of only 0.4%).

There are more and more assumptions in the market that the Fed will decide to tighten the monetary policy parameters earlier than previously announced terms. Abstracting from intraday price fluctuations, it can be noted that the main support for the Dollar is provided by the hawkish expectations of investors. This is especially evident in the EUR/USD pair. The non-correlation of the positions of the ECB and the FRS is becoming more and more pronounced, and it is this fact that serves (and will serve in the future) as the main anchor for the EUR/USD pair.

What’s next to watch in EUR/USD?

We have two important events that can trigger higher volatility in the EUR/USD. They are ECB refinancing rate and monetary policy statement followed by ECB press conference. On the other hand, we have US unemployment claims figures that can also impact the market.

EUR/USD news

EUR/USD technical forecast: More fall to come?

The EUR/USD has stabilized near the level of 1.18. The relative strength indicator has corrected to the neutral zone. The bullish potential is limited by the downtrend line, which indicates the weakening of the European currency.

-Looking for high probability free forex signals? Let’s check out-

Thus, the EUR/USD forecast for the week of July 19-23, 2021, is expected to depreciate towards the lows of the year. The breakdown of the level of 1.17 will open the way to the psychological level of 1.15.

EUR/USD daily chart forecast

EUR/USD daily chart forecast

Looking to trade forex now? Invest at eToro!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Get the 5 most predictable currency pairs


EUR/USD Forecast, Technical Analysis, Outlook ► preview of the major events that move Euro/Dollar during the week. Here are some general data. Scroll down for the latest EUR/USD forecast.

EUR/USD characteristics

Euro/dollar is the world’s most popular currency pair for both retail and institutional forex trading. 19 European countries that vary quite a bit from each other share the single currency. The key countries are Germany, France, Italy and Spain. The US dollar is the reserve currency of the world.

A wide trade surplus, originating mostly from German exports, means that funds are flowing into the euro area. When markets are calm, this influx pushes the common currency higher. However, the eurozone has its share of economic and political issues and speculation takes its toll.

The euro debt crisis engulfed Greece, Portugal, Ireland, Italy, and Spain. While the worst may be behind us, it is always looming. The leadership of the European Central Bank and President Mario Draghi helped stabilize and even save the euro. His “whatever it takes” speech in July 2012″ was a turning point. The diverse countries are linked by a monetary union but not a fiscal one, and this remains the Achilles heel.

EUR//USD trading is often choppy, especially when it is confined to narrow ranges. When the pair is in trend, past technical lines, even those from 2003, are respected quite nicely. €/$ has a “good memory”.

EUR/USD recent moves

The euro-zone economies are growing at a robust pace in 2017. Unemployment is falling and even core inflation is finally rising albeit temporarily All this has led to optimism that sent the euro higher.

The ECB will halve bond-buys to 30 billion euros from January 2018. However, it left the door open to extending the QE program beyond September, and this hurt the euro. A weaker euro makes exports more attractive and pushes imported inflation higher. Draghi is happy with growth but worried about inflation.

The political uncertainty in Germany is becoming an issue after inconclusive elections in September. A fresh round of elections joins the crisis in Catalonia and the political instability in Italy.

In America, hopes for fiscal stimulus faded early in the year, but are now on the rise again, with Trump’s tax plan. The Federal Reserve has maintained its plan for three rates hikes in 2017 despite lower US inflation.

Check out our guides on the best forex brokers and forex robots to help with your trading.

Latest weekly EUR/USD forecast

1 2 3 64