💰 EUR/USD Holds Above 1.0350 in the European Session, Awaiting U.S. Inflation Report
The Euro/US Dollar (EUR/USD) remains stable above 1.0350 on Wednesday as investors focus on former U.S. President Donald Trump’s new tariff plan and the U.S. Consumer Price Index (CPI) report.
✔ Stability in the U.S. dollar due to Trump’s “Reciprocal Tariff” policy
✔ Increased uncertainty in U.S. policy following Federal Reserve Chairman Jerome Powell’s statement
✔ Inflation data could determine the direction of the U.S. dollar
📌 Key Points for Pakistani Forex Traders:
✅ If U.S. CPI comes in higher than expected, the USD may strengthen, pushing EUR/USD lower.
✅ If CPI is lower than expected, the Euro could gain further strength.
✅ Market volatility is high, so cautious trading is advised.
📊 EUR/USD Technical Analysis – Resistance & Support Levels
🔹 The Relative Strength Index (RSI) for EUR/USD has reached 60, indicating strong buyer interest.
🔹 Three consecutive 4-hour candles have closed above the 200-period Simple Moving Average (SMA).
📌 Key Resistance Levels:
✔ 1.0390-1.0400 – 100-period SMA and 50% Fibonacci retracement
✔ 1.0440 – 61.8% Fibonacci retracement
✔ 1.0500-1.0510 – 78.6% Fibonacci retracement
📌 Key Support Levels:
✔ 1.0290-1.0300 – 23.6% Fibonacci retracement
✔ 1.0250 – Important static support level
✔ 1.0200 – Major psychological and technical support level
📌 Recommendations for Pakistani Forex Traders:
✅ If EUR/USD moves above 1.0400, further bullish momentum is expected.
✅ If it falls below 1.0300, downside risks may increase.
✅ Keep an eye on the U.S. CPI data, as it can strengthen or weaken the USD.
📉 Impact of U.S. Inflation Data on the Market
📌 Key Economic Announcements Affecting the Market:
🔹 Wednesday, 10:30 (GMT+2) – Eurozone 30-year bond auction
🔹 Wednesday, 11:00 (GMT+2) – Eurozone Consumer Price Index (CPI)
🔹 Wednesday, 12:00 (GMT+2) – U.S. MBA Mortgage Applications
🔹 Wednesday, 13:30 (GMT+2) – U.S. Consumer Price Index (CPI)
🔹 Thursday, 13:30 (GMT+2) – U.S. Jobless Claims
🔹 Friday, 13:30 (GMT+2) – U.S. Retail Sales Report
✔ If the U.S. CPI comes in higher than expected, the USD may strengthen, pushing EUR/USD lower.
✔ If the CPI is weaker, the pressure on the Fed to cut interest rates may increase, weakening the USD.
✔ Federal Reserve Chairman Jerome Powell will testify before Congress today, which could further shake the markets.
📌 Pakistani Traders Should Closely Monitor Major Announcements as any significant movement in USD or EUR can create excellent forex trading opportunities.
🔍 Final Analysis – Where Are the Best Trading Opportunities in EUR/USD?
✔ The EUR/USD pair remains stable above 1.0350, but the U.S. CPI report could drive it higher or lower.
✔ If the USD strengthens, EUR/USD could drop to 1.0250 or lower.
✔ If the USD weakens, EUR/USD could rise to 1.0440 or beyond.
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