The euro continues to decline. Quotes almost reached $1.05, which was the lowest level since the beginning of January. This decline was the most significant in recent months. The strengthening of the dollar was influenced by weak data on consumer confidence in Germany, as well as statements by representatives of the US Federal Reserve System calling for a tighter monetary policy. In addition, strong US economic performance also contributed to the dollar’s rise.
Investor expectations are centered on key inflation data due out this week. The European Central Bank is not expected to raise interest rates in the near future, with concerns about slowing economic growth outweighing concerns about inflation. The market is also increasingly likely to see interest rates cut by June next year, with those cuts believed to be almost fully priced in by July. ECB President Lagarde’s words that the bank’s policies had reached levels conducive to achieving inflation targets also had an impact on the market.
EUR/USD forecast Euro Dollar for September 29, 2023
The Euro/Dollar currency pair EUR/USD continues to move as part of the development of a decline and a bearish channel. Moving averages indicate the presence of a short-term downward trend in the pair. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers of the European currency and a potential continuation of the fall in quotes of the asset pair from current levels. At the time of publication of the forecast, the Euro to US Dollar exchange rate is 1.0523. As part of the Forex forecast for September 29, 2023, we should expect an attempt to develop a bullish price correction and a test of the resistance level, which is located on the EUR/USD pair near the 1.0565 area. Further, prices will rebound downwards and the Euro/Dollar currency pair will continue to fall. The potential target of such a movement on FOREX is the area below the level of 1.0315.
An additional signal in favor of the development of a bearish scenario on the EUR/USD currency pair tomorrow will be a rebound from the upper boundary of the bearish channel. The second signal in favor of this option will be a rebound from the resistance line on the relative strength indicator (RSI). Cancellation of the option to reduce quotes of the Euro/Dollar currency pair will be a strong growth and a breakdown of the level of 1.0675. This will indicate a breakdown of the upper boundary of the downward channel and continued growth to the area at the level of 1.0925. Expect confirmation of a fall in the EUR/USD currency pair with a breakdown of the support level and closing of the price below the level of 1.0485.
EUR/USD forecast Euro Dollar for September 29, 2023 suggests an attempt to develop a bullish correction of the pair and a test of the resistance area near the level of 1.0565. Where should we consider a price rebound downwards and an attempt to continue the fall of the currency pair on the market to the area below the level of 1.0315. An additional signal in favor of a fall in the instrument on the Forex market will be a test of the trend line on the relative strength indicator (RSI). Cancellation of the option to reduce the EUR/USD pair will be a strong increase in quotes and a breakdown of the level of 1.0675. This will indicate a breakdown of the resistance area and continued growth of the currency pair on Forex to the area above the level of 1.0925.
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