Dollar bears continue to control the situation as the inflation concerns rise.

Fundamental analysis

Some of the recent pressure on EUR stems from the possibility of slower growth ahead as the U.S. economy enters the new post-pandemic normal.

The Federal Reserve and its policies play strongly into those growth worries, too, as the central bank's easy money spigots are eventually going to get dialed back as the economy improves.

While the Federal Reserve has said it won't reign in its supports until the labor market returns to full employment, bears argue the central bank may have to act sooner rather than later to head off runaway inflation.

Dollar bears and most Federal Reserve officials remain largely unconcerned about "sustained" inflation as they expect the issues and dislocations causing higher prices will resolve themselves in the second half of the year.

Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan are both scheduled to speak today so we should learn a bit more. Don't forget, tomorrow we get the Fed minutes from the most recent FOMC meeting.

Economic data includes E-Commerce Sales and Housing Starts and Permits.

Technical analysis

The EUR futures are close to the 1.2240 resistance which has been bulls' swing target. The market is far from being overbought. In other words, if price breaches resistance, we can see 1.2310 in extension. Today we have important data ahead. So, it's advised to reduce exposure. Rejection from mentioned resistance can bring the price down to ma50 and ma100 on the 4h chart.

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed within this site, support and content. Our forecasts and other content on this website should be used as learning aids. If you decide to invest real money, all trading decisions are your own. The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. Futures trading is speculative and involves the potential loss of investment. Past results are not necessarily indicative of future results. Trading is not suitable for all investors.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD holds above 1.21 as tensions mount ahead of the Fed

EUR/USD is trading above 1.21, in limited, typical, pre-Federal Reserve trading. Markets await the bank's dot plot and Chair Powell's comments on potential tapering of the Fed's bond-buying scheme. 

EUR/USD News

GBP/USD hovers around 1.41 after strong UK CPI

GBP/USD is trading around 1.41, rising after the UK reported an annual inflation rate of 2.1% in May, beating estimates and raising the chances of a BOE rate hike. The focus remains on the Federal Reserve's decision later in the day.

GBP/USD News

XAU/USD remains confined in a range near $1,860 level, FOMC awaited

Gold lacked any firm directional bias and remained confined in a narrow trading band through the first half of the European session on Wednesday.

Gold News

Shiba Inu ready to reverse to $0.0000050

SHIB price faces stiff resistance ahead. Shiba Inu has had a difficult time recovering, suggesting that it may soon face rejection. In the following video, FXStreet's analysts evaluate where SHIB price could be heading next as Shiba Inu gets weaker.

Read more

Federal Reserve Preview: First up, then down? Playbook for trading the Fed

To taper or not to taper? That is the question for markets ahead of the Federal Reserve's all-important June meeting. Fed Chair Powell will likely shoot down any talk of tapering the bank's bond buys. Highly volatile trading could see the greenback first drop.

Read more

Majors

Cryptocurrencies

Signatures