By RoboForex Analytical Department
The market major starts this new week of February with an attempted correction. EUR/USD is balancing near 1.0690. After the lows of the previous week, this is good news though right now the bounce does not look really confident.
Investors are beginning to have more and more doubts that the Federal Reserve System will put aside its tightening monetary policy and include the expectations of further interest rate increases in the quotes. While previously traders used to expect a pause after two subsequent increases by 25 base points this year, now there are no such guarantees.
It is a day off in the US today, which means volatility will be smoothed out.
On the EUR/USD H4 chart, a consolidation range formed around 1.0720. The market extended it downwards to 1.0612. A link of correction to 1.0720 is not excluded (a test from below). Then a decline to 1.0577 should follow, from where the wave might extend to 1.0500. Technically, the scenario is confirmed by the MACD, whose signal line is under zero. Wait for the lows to be renewed.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
On H1, the currency pair has completed a wave of decline to 1.0612 and a correction to 1.0690. A consolidation range is expected to form around this level. With an escape downwards, a new wave of decline to 1.0577 should start. Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is above 50, and a decline to 20 is to follow.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

- EUR/USD Hits Three-Year High as US White House Policy Concerns Mount Apr 21, 2025
- Today is Good Friday — most financial markets will be closed Apr 18, 2025
- EUR/USD in Equilibrium: Quiet Trading Expected on Good Friday Apr 18, 2025
- The Bank of Canada kept the interest rate unchanged. In New Zealand, there is an increase in inflation Apr 17, 2025
- Pound Among the Winners Boosted by US Dollar Weakness and Rate Cut Prospects Apr 17, 2025
- China data beat expectations. Inflationary pressures in Canada continue to ease Apr 16, 2025
- Japanese Yen Surges as Weak US Dollar Fuels Momentum Apr 16, 2025
- Investors welcome tariff reliefs. Demand for safe assets is decreasing Apr 15, 2025
- CN50 waits on key China data Apr 15, 2025
- Gold Prices Remain Elevated Amid Concerns Over Trump’s Tariffs Apr 15, 2025