empty
27.03.2025 10:58 AM
EUR/USD. Analysis and Forecast

This image is no longer relevant

Today, the EUR/USD pair is gaining some positive traction, breaking a six-day losing streak.

The bullish momentum is lifting spot prices toward the 1.0785 level, marking a new daily high. The upward movement is supported by a weakening U.S. dollar, which has pulled back from a three-week high, creating a more optimistic outlook for the euro.

This image is no longer relevant

Recent actions by U.S. President Donald Trump—including the introduction of 25% tariffs on imported cars, light trucks, and all steel and aluminum, as well as upcoming reciprocal tariffs on April 2—are generating market uncertainty and contributing to the decline of the U.S. Dollar Index. This, in turn, is supporting the EUR/USD pair, particularly against the backdrop of the Federal Reserve's forecast for two 25 basis point rate cuts by the end of the year.

Additionally, the European Union is preparing retaliatory measures in response to U.S. tariffs, which could escalate trade tensions and increase the risk of a full-scale trade war between the EU and the U.S. This keeps traders cautious about taking aggressive long positions in the euro. Moreover, today's softer tone in the equity markets may lend support to the U.S. dollar as a safe haven, limiting the upward potential for EUR/USD.

To identify better trading opportunities, attention should be paid to the release of the U.S. Q4 GDP report, weekly initial jobless claims data, and pending home sales figures. Furthermore, speeches by key FOMC members may inject volatility into the U.S. dollar, providing some momentum to EUR/USD. However, the main focus remains on Friday's release of the U.S. Core Personal Consumption Expenditures (PCE) Price Index.

Technical Outlook: If the pair can hold above the 1.0780 level and break through the psychological barrier at 1.0800, this would pave the way for further gains. However, support at 1.0725—where the 200-day SMA currently lies—remains crucial. A break below that could trigger additional selling pressure. The next support is at the 1.0700 level, followed by the 100-day EMA near 1.0620. Still, as long as the oscillators on the daily chart remain in positive territory, the EUR/USD pair appears determined to hold its ground.

USD Performance Overview: The table below shows the percentage change of the U.S. dollar against the major listed currencies for today.

This image is no longer relevant

The U.S. dollar has been strongest against the Canadian dollar.

This image is no longer relevant

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

The Japanese yen is attracting buyers following a recent decline, owing to its status as a safe-haven asset in times of uncertainty. The anticipated recovery of the yen is supported

Irina Yanina 18:47 2025-05-06 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair is struggling to establish a clear short-term direction, trading within a multi-day range as markets await decisive news from the upcoming FOMC meeting regarding the interest rate

Irina Yanina 11:05 2025-05-06 UTC+2

USD/CAD. Analysis and Forecast

Today, the USD/CAD pair remains positive within a familiar range, without showing strong buying momentum. The strengthening of the U.S. dollar following a two-day decline is attributed to the positive

Irina Yanina 11:03 2025-05-06 UTC+2

The Market Took a Step Back

The longest winning streak of the S&P 500 in two decades has come to an end. But who's responsible? The Federal Reserve, which plans to keep rates unchanged

Marek Petkovich 10:16 2025-05-06 UTC+2

Markets Anxiously Await the Fed's Monetary Policy Meeting (Potential for Renewed Growth in Bitcoin and #NDX)

Markets remain tense. The U.S. Dollar Index and the cryptocurrency market are stagnating, caught between opposing forces. Investors are tensely awaiting the outcome of the Federal Reserve's monetary policy meeting

Pati Gani 10:02 2025-05-06 UTC+2

GBP/USD Overview – May 6: Trump Goes After the Film Industry

The GBP/USD currency pair traded upward during the first half of Monday and downward during the second half. While the U.S. dollar didn't lose much this time, its brief attempt

Paolo Greco 07:04 2025-05-06 UTC+2

EUR/USD Overview – May 6: The Protest Against Donald Trump Continues

The EUR/USD currency pair began a new upward cycle on Monday. At this point, no one is likely surprised by another drop in the U.S. dollar. The market started selling

Paolo Greco 07:04 2025-05-06 UTC+2

What to Pay Attention to on May 6? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Tuesday. In the Eurozone and Germany, the second estimate of April's services PMI will be published, but these are unlikely to attract

Paolo Greco 05:49 2025-05-06 UTC+2

Fed Rate Cut Probability Is Near Zero

This week marks the third Federal Reserve meeting of the year. At the first two meetings, monetary policy parameters remained unchanged, and there is virtually no chance of a rate

Chin Zhao 00:50 2025-05-06 UTC+2

The Dollar Sell-Off Shows No Signs of Slowing Down

The latest CFTC report reveals that the dollar sell-off continues unabated. Weekly changes against major currencies amounted to -$3.1 billion, bringing the total accumulated short position to -$17.1 billion

Kuvat Raharjo 00:50 2025-05-06 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.