EUR/USD: Which way will it go next? Market expectations ahead of the Federal Reserve's interest rate review

Euro to US Dollar Exchange Rate Continues to Show Strong Buying Pressure Amid broad US dollar weakness and market expectations shifting in response to the stance of public financial institutions.

Price Momentum Confirms Key Levels

This currency pair successfully broke through the 1.1735 level, which is highly significant as it represents the confluence of the 100-hour moving average indicator and the 50% Fibonacci retracement level, following a decline from 1.1808 to 1.1660 last week. The formation of a solid base near 1.1660, the lowest point in approximately four weeks, has led to continued strength, with prices breaking above 1.1710 and maintaining a clear bullish trend.

Technical Indicators Support Further Gains

MACD indicator analysis shows a shift to positive, with continued upward movement indicating an improved rate of momentum change. Additionally, the Relative Strength Index (RSI) at 59 does not show overbought signals, suggesting room for further price expansion.

The Fibonacci resistance level at 61.8%, located around the mid-1.1700s, will be a key point for traders to monitor closely. If the upward move can surpass this level, it indicates stronger market expectations for a reversal of the downward correction. Conversely, failure to break through may lead to consolidation within the recent trading range.

Current Spot Price Near 1.1735

The market has gained approximately 0.10% today, supported by the divergence in interest rates between the US Federal Reserve and the European Central Bank. Market expectations suggest the US may delay further rate hikes, while Europe remains committed to no rate cuts.

The outflow of investment from dollar assets into alternative options has consistently supported the euro, especially as global market risks shift positively.