American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

EUR/USD forecast: signal as C&H pattern points to a surge

by admin April 9, 2025
April 9, 2025
EUR/USD forecast: signal as C&H pattern points to a surge

The EUR/USD exchange rate continued its strong uptrend as global risks rose. It jumped to a high of 1.1087, its highest swing since April 4. It has soared by over 8.3% from the lowest point this year as focus shifts to the upcoming US consumer inflation data and Federal Reserve minutes. Technicals point to further euro surge after the pair formed a cup and handle pattern. 

ECB interest rate cuts

The EUR/USD pair continued soaring even as analysts and some ECB officials hinted of more interest rate cuts. 

In a statement Francois Villeroy de Galhau, a member of ECB’s governing council, said that the bank should cut interest rates faster. He noted that the trade war will not have a non-negligible direct impact on the European economy. 

In a statement, he warned that the bloc’s GDP growth will have a 0.25% hit this year. He expects the European economy to have a disinflationary trend, helped in part by the soaring euro that makes imports less expensive. He said:

“There’s still room to cut rates, which we must decide on using agile pragmatism: Pragmatic because it’s based on economic data and agile because we must go as fast as is justified.”

Most analysts believe that the ECB will need to cut rates in May and June, a move that will help lower the cost of doing business and boost economic growth. 

A key concern for Europe is that Trump has started charging a 20% tariff on most goods and another 25% on cars, steel, and aluminum. These tariffs mean that demand for some discretionary goods from Europe like vehicles, could start to dry as Americans opt for locally-made vehicles. 

Worse, the soaring EUR/USD exchange rate means European goods are now becoming more expensive to American consumers. 

The next key catalyst for the EUR/USD pair will be the upcoming minutes by the Federal Reserve. These minutes will provide more information about the last meeting. 

Also, the pair will react to Thursday’s inflation report, which may push the Fed to cut interest rates. Economists expect the data to show that the headline consumer price index (CPI) and core CPI dropped to 2.5% and 3.0%. These numbers, however, will likely not have an impact because they will not factor in the recent tariffs.

EUR/USD technical analysis

EURUSD chart by TradingView

The daily chart shows that the EUR to USD exchange rate has jumped from the year-to-date low of 1.0175 to the current 1.1025. It formed a golden cross as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. 

Most importantly, the pair has formed a cup-and-handle pattern, a popular continuation sign. The upper side of this pattern is at 1.0935, which the pair has now moved above. Its depth is about 7%.

The Relative Strength Index (RSI) and MACD indicators have all pointed upward. Therefore, measuring 7% from the upper side of the cup shows a target at 1.1700. This view will be confirmed if it moves above the key resistance point at 1.1215, the highest point in 2024.

The post EUR/USD forecast: signal as C&H pattern points to a surge appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Analysis: Gold’s recent sell-off fails to shake supportive outlook, but silver remains vulnerable
next post
US soybean market rattled as China strikes with fresh tariffs

Related Posts

China expels two former defense ministers from Communist...

June 29, 2024

Mysterious symbols found near footprints shed light on...

April 13, 2024

Israel has ‘no choice’ but Rafah offensive, Netanyahu tells...

March 29, 2024

Lower turkey prices to reduce the cost of...

November 22, 2024

She was told she wouldn’t live past her...

August 10, 2024

Argentina accuses Venezuela of cutting power to its...

March 28, 2024

At least 6 dead, 7 missing as fishing...

July 24, 2024

Voyager 1 is sending data back to Earth...

April 24, 2024

Mixed martial arts fighter, relatives of regional official...

June 26, 2024

Chilean report into LATAM Airlines flight plunge finds...

April 19, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025
    • Inflation outlook in 2025: what April’s soft data isn’t telling you

      May 18, 2025
    • Rich List 2025: UK billionaires decline for first time in years amid market turmoil

      May 18, 2025
    • Novo Nordisk CEO to step down as obesity drug competition intensifies

      May 18, 2025
    • Argentina’s black market for dollar falters as President Milei dismantles currency controls

      May 18, 2025

    Categories

    • Business (2,959)
    • Investing (2,431)
    • Latest News (1,990)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved