The EUR/USD pair extended its consolidating price trend during the Asian trading session on Tuesday and traded below the highest level since September 13 reached the previous day. Currently, it is attempting to hold above the 1.0700 level and still depends on the momentum of the US dollar (USD) exchange rate.
Market news update:
The USD index (DXY), which tracks the greenback against a basket of currencies, built on an overnight recovery from nearly an 8-week low and turned out to be a key resistance factor for the EUR/USD pair. Officials from the Federal Reserve (Fed) gave mixed signals about the future path of interest rate hikes, leading to a positive increase in US treasury bond yields on Monday and supporting short-term compensatory moves with USD.
Currently, there is a higher likelihood of the Fed cutting interest rates in June 2024. Therefore, the focus will remain on the appearance of Fed Chair Jerome Powell on Wednesday and Thursday.
Based on these reasons and the 4-hour chart analysis, there is a possibility that Gold will continue to decline, currently trading at 1.0707 with an expected decline to 1.0650. If favorable, the EUR will continue to receive support and further development.
Market news update:
The USD index (DXY), which tracks the greenback against a basket of currencies, built on an overnight recovery from nearly an 8-week low and turned out to be a key resistance factor for the EUR/USD pair. Officials from the Federal Reserve (Fed) gave mixed signals about the future path of interest rate hikes, leading to a positive increase in US treasury bond yields on Monday and supporting short-term compensatory moves with USD.
Currently, there is a higher likelihood of the Fed cutting interest rates in June 2024. Therefore, the focus will remain on the appearance of Fed Chair Jerome Powell on Wednesday and Thursday.
Based on these reasons and the 4-hour chart analysis, there is a possibility that Gold will continue to decline, currently trading at 1.0707 with an expected decline to 1.0650. If favorable, the EUR will continue to receive support and further development.
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