EUR - Euro shows technical adjustment, focus on Fed interest rate meeting

This week will also see the U.S. Federal Reserve (FED) policy meeting, where the interest rate decision will be announced late on Wednesday night, and important U.S. non-farm employment data will be released on Friday. The Fed is expected to keep its benchmark interest rate between 5.25% and 5.5%. Investors currently expect only one rate cut this year, most likely in November, according to CME's FedWatch Tool.

The trend of the euro against the U.S. dollar, as seen on the technical chart, is that the RSI and stochastic index are turning back from the overbought area. It is expected that the further rise of the euro may be limited. The 25-day moving average of 1.0740 will become the current resistance, and the greatest resistance will be 100. The daily moving average is 1.0850 and 1.0950 levels. The lowest support is expected to be 1.0670 and 1.06, and the greatest support is expected to be the 1.05 or even the low of 1.0447 in October last year.

Forecast range:
Resistance 1.0740 – 1.0850 – 1.0950
Support 1.0670 - 1.0600 - 1.0500 - 1.0447

Highlights of the week:
29/4
Germany's initial CPI value in April increased by 0.5% from the previous month and 2.2% from the same period last year.
Germany's preliminary HICP value in April increased by 0.6% from the previous month and by 2.4% from the same period last year.
Eurozone consumer inflation expectations index in April was 11.6
Eurozone industrial sentiment index in April was negative 10.5
Eurozone consumer confidence index in April was negative 14.7
Eurozone economic sentiment index in April was 95.6
Eurozone business sentiment index in April was negative 0.53

ECB Vice President De Guindos: Geopolitical tensions pose upward risks to Eurozone inflation

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