EUR/USD Analysis: Holds Near 1.05


  • As expected, the EUR/USD will remain stable in narrow ranges with a bearish bias until the US jobs figures are announced.
  • In addition to the anticipated statements from several US Federal Reserve officials, most notably a speech by Federal Reserve Chairman Jerome Powell later today, Wednesday.
  • According to reliable trading platforms, the EUR/USD is trading within a range today, between 1.0487 and 1.0520, amidst stronger downward momentum.

  •  Will the US Federal Reserve Cut Interest Rates?Recent statements from some Federal Reserve officials have indicated that they expect the central bank to continue cutting interest rates throughout 2025, but they did not confirm that they are committed to making the next cut later in December. According to some members of the bank, recent economic data has raised concerns that inflation may remain above the 2% target, but they added that “there is no indication” that prices in major service categories should remain at their current levels or increase.Overall, the US Federal Reserve has cut interest rates by three-quarters of a percentage point since last September, starting with an unusually large half-point cut. Many officials have indicated support for a more gradual pace of US interest rate cuts in the coming months. The bank’s officials had begun cutting US interest rates in September after pushing them to a peak of 5.25% to 5.5%, which helped to ease inflationary pressures from a peak of 7.2% in mid-2022. European Stocks Rebound to a One-Month HighAccording to stock trading companies’ platforms. European stocks rose yesterday, with the Stoxx 50 and Stoxx 600 rising 0.5% and 0.6% respectively, to hit a one-month high, driven by a 1.6% gain in retail stocks and more than 1% gains in construction and materials stocks. However, insurance stocks fell 0.4%. In France, political tensions rose. Despite this, the French CAC 40 index closed up 0.3%, paring earlier gains, while the German DAX index crossed the 20,000 marks for the first time. Will the Euro Remain Weak?The single European currency, the Euro, is expected to remain under downward pressure. This is due to factors such as political and economic concerns in the Eurozone, as well as the reaction to Trump’s trade wars and the future of easing the European Central Bank’s monetary policy. Recently, political unrest in France has exacerbated market uncertainty. As a result, the EUR/USD has remained under pressure amid fears of a government collapse in France, as Prime Minister Michel Barnier faces a vote of no confidence on a divisive budget plan that includes tax increases and spending cuts.As a result, increased demand for euro hedges pushed volatility to its highest levels since March 2023, reflecting growing concerns about weak economic data and political instability across major eurozone economies. Overall, over the past month, the euro has fallen 3% against the US dollar and more than 1% against both the pound and the Swiss franc. The parity rate against the US dollar has become a concern for forex investors. EUR/USD Analysis Today:According to the previous technical analyses, the general trend of the Euro against the US Dollar EUR/USD is still bearish and the movement around and below the support level of 1.0500 will continue to stimulate the bears’ control and thus prepare for new bearish breaches that will increase expectations for the future of the Euro Dollar parity price. Especially, if the bears succeed in launching towards the support levels of 1.0440 and 1.0300 respectively. Consequently, it will push the technical indicators towards strong saturation levels of selling. In contrast, and over the same period of time, the first break of the current downward channel will be by stabilizing above the resistance of 1.0670 first. EUR/USD Trading Signals:You should consider that the factors weakening the Euro are strong and may continue for some time. Therefore, any gains in the upward rebound of the EUR/USD pair will be a target for selling. You can follow the EUR/USD signals and other free trading signals on our website, but we recommend avoiding risk and activating take-profit and stop-loss orders to ensure the safety of your trading account from any sudden price fluctuations.More By This Author:EUR/USD Analysis: Continues Its Bearish TrajectoryEUR/USD Analysis: Faces Downward PressureGBP/USD Analysis: Identifying Short-Term Selling Opportunities

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