By RoboForex Analytical Department
The EUR/USD pair moved upward to 1.0844 on Thursday, marking an unexpected shift following a period of strong US dollar performance. This change in dynamics can be attributed to investors’ positive response to comments made by US Federal Reserve Chair Jerome Powell regarding the future of interest rates. Powell’s remarks led to a surge in risk appetite, resulting in the dollar’s decline.
Powell indicated that economic indicators would heavily influence the Federal Reserve’s decisions on interest rate adjustments. Traders interpreted his comments as suggesting that, given the recent modest nature of US economic data, the anticipated forecast of three rate cuts in 2024, starting in June, remains on the table. The expectation is for the Federal Reserve to reduce interest rates by 75 basis points by the year’s end, which aligns with earlier statements from the Fed. These hinted at a majority consensus among monetary policy committee members to commence rate cuts within the year, contingent on economic data.
Powell’s reaffirming the Fed’s trajectory towards lower interest rates, with specific timing depending on upcoming data, sets the stage for March’s closely watched US employment market reports. The focus will be on whether the unemployment rate has remained steady and whether there has been any deceleration in the growth of average wages.
Technical analysis of EUR/USD
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
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.
On the H4 chart, the EUR/USD pair has completed a correction to 1.0783, with a narrow consolidation range now established around this level. An upward breakout from this range could lead to a continuation of the correction to 1.0847, potentially followed by a new downward wave to 1.0694. This scenario is supported by the MACD indicator, where the signal line is below zero and the histogram peaks, suggesting a potential sharp decline.
The H1 chart reveals a corrective pattern towards 1.0847, with an expected shift towards 1.0783 to commence a decline phase. A new consolidation range at these levels could lead to further correction to 1.0888 or a downward wave to 1.0694 upon a breakout. The Stochastic oscillator, positioned above 80, anticipates a significant drop to the 50 mark, potentially leading to further declines.
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.
- Gold Falls for the Third Consecutive Week: Is There Still Upside Potential? Jun 22, 2026
- Bank Indonesia raised its interest rate. Norges Bank and the SNB left rates unchanged Jun 19, 2026
- EUR/USD Loses Ground as Market Sentiment Favours the US Dollar Jun 19, 2026
- GBPUSD Awaits Bank of England Meeting Near April Lows Jun 18, 2026
- Markets disliked the results of the FOMC meeting. HKMA followed the Fed and kept its rate unchanged. Jun 18, 2026
- Gold Surges 2% Since Week Opening Amid Geopolitical Shifts and Fed Expectations Jun 17, 2026
- Your Bourse and FXPRIMUS Bring 24/7 Synthetic Indices to the Global Broker Market Jun 16, 2026
- Institutional investors continue to reduce their presence in metals Jun 16, 2026
- USDJPY Driven by Emotions: Bank of Japan Raises Rate to Highest Level Since 1995 Jun 16, 2026
- The United States and Iran have signed a peace agreement – oil has fallen to 80 dollars per barrel. Jun 15, 2026
