EUR/USD H4 Analysis: Bearish Channel Resumes?

EUR/USD Forecast: Impact of Fed and ECB Policies

The EUR/USD forex pair, often referred to as “Fiber,” is one of the most liquid and widely traded currency pairs in the world, reflecting the economic relationship between the Eurozone and the United States. Traders closely watch both the European Central Bank (ECB) and the Federal Reserve for monetary policy decisions that impact this pair. Today, EUR news from Destatis on the trade balance is expected to influence the EURUSD market sentiment, as a positive number could boost the Euro. Meanwhile, a series of speeches from key Federal Reserve members, including Philip Jefferson and Raphael Bostic, could provide insights into the future direction of U.S. interest rates, with any hawkish tone likely to support the USD, putting pressure on the Fiber’s exchange rate.

Chart Notes: 
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
In the uploaded EUR/USD H4 chart, the MACD shows signs of the pair’s weakening bearish momentum, as the histogram bars have reduced in size, signaling a possible shift in its market sentiment. Although the MACD line remains below the signal line, the reduction in downward pressure indicates that the bearish trend might be slowing down. Additionally, the Stochastic RSI is in overbought territory, suggesting that the recent upward correction may be nearing exhaustion, and a potential reversal to the downside could be on the horizon. Together, these indicators point to a cautious EUR/USD technical outlook, with the possibility of a bearish continuation if overbought conditions persist.

•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.