With new tariffs likely to have a significant negative impact on the American economy, the euro made strong gains against the dollar in the aftermath of the announcement. Against these, inflation in the eurozone cooled to 2.2% according to the flash release for March. The consensus is for a total cut of 0.65% by the ECB for the rest of 2025, which in itself is a negative factor for the euro: the difference in rates between it and the dollar is unlikely to change significantly until possibly next year.
$1.10 looks like a strong resistance which could resist testing for some time unless sentiment supports a breakout. However, with the price having consolidated above $1.08 for most of last month, a move above $1.10 seems to be more favourable technically now compared to around this time in March: there’s no indication of overbought and the slow stochastic is close to neutral at around 55.
The area around $1.07-1.08 and particularly $1.07 itself around the 100% monthly Fibonacci retracement will probably remain in view as a zone of support. A lot depends on the results of the upcoming American job report: since the range of expectations for total nonfarm is so wide, it seems more likely that the actual result will diverge significantly from the average consensus.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
$1.10 looks like a strong resistance which could resist testing for some time unless sentiment supports a breakout. However, with the price having consolidated above $1.08 for most of last month, a move above $1.10 seems to be more favourable technically now compared to around this time in March: there’s no indication of overbought and the slow stochastic is close to neutral at around 55.
The area around $1.07-1.08 and particularly $1.07 itself around the 100% monthly Fibonacci retracement will probably remain in view as a zone of support. A lot depends on the results of the upcoming American job report: since the range of expectations for total nonfarm is so wide, it seems more likely that the actual result will diverge significantly from the average consensus.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.