Created
: 2025.06.16
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
EUR/USD Price Forecast: Ascending channel favors bulls ahead of the key central bank event risk
World FX news
Breaking news
EUR/USD Price Forecast: Ascending channel favors bulls ahead of the key central bank event risk
New
2025.06.16 14:05
2025.06.16 14:05
2025.06.16 14:05
- EUR/USD kicks off the new week on a softer note amid a modest USD uptick.
- The lack of follow-through selling warrants some caution for bearish traders.
- Investors also seem reluctant ahead of the key FOMC decision on Wednesday.
The EUR/USD pair trades with a mild negative bias below mid-1.1500s through the Asian session on Monday amid a modest US Dollar (USD) uptick, though it lacks bearish conviction. Spot prices remain close to the highest level since October 2021, around the 1.1630 area touched last week as traders now look to the crucial FOMC policy decision on Wednesday before placing fresh directional bets.
Heading into the key central bank event risk, expectations that the Federal Reserve (Fed) will resume its rate-cutting cycle in September might hold back the USD bulls from placing aggressive bets. Moreover, the European Central Bank's (ECB) hawkish signal, that the end of the rate-cutting cycle is nearing, should act as a tailwind for the shared currency and continue supporting the EUR/USD pair.
From a technical perspective, the recent move-up witnessed over the past month or so, along an ascending channel, points to a well-established short-term uptrend and favors bullish traders. Moreover, oscillators on the daily chart are holding in positive territory and suggest that the path of the least hurdle for the EUR/USD pair is to the upside. Hence, any corrective slide could be seen as a buying opportunity.
In the meantime, the 1.1500 psychological mark could protect the immediate downside ahead of the 1.1450-1.1445 horizontal resistance breakpoint. This is closely followed by the trend-channel support, around the 1.1435-1.1430 area, which should act as a pivotal point. A convincing break below the latter could drag the EUR/USD pair further below the 1.1400 mark, towards the 1.1370-1.1365 support zone.
On the flip side, the 1.1570 area, followed by the 1.1600 round figure and the 1.1630 region, or the multi-year peak touched last Thursday, now seems to act as immediate hurdles. Some follow-through buying beyond the 1.1655-1.1660 zone, or the top end of the short-term ascending channel, will be seen as a fresh trigger for bullish traders and allow the EUR/USD pair to aim towards conquering the 1.1700 mark.
EUR/USD daily chart
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates - or the expectation of higher rates - will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB's 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone's economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.06.16
Related articles
USD/JPY can potentially test 145.00 - UOB Group
10 minutes agoJPY soft and underperforming ahead of BoJ Tuesday - Scotiabank
13 minutes agoUSD/JPY: BoJ is coming up next - OCBC
17 minutes agoGBP flat into high risk week - Scotiabank
24 minutes agoEUR up modestly, with focus on ECB/Fed outlook - Scotiabank
37 minutes agoNZD/USD surges to near 0.6040 as investors digest Middle East tensions
39 minutes ago
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
USD/CNH: Likely to trade in a range between 7.1770 and 7.1970 - UOB Group
USD is likely to trade in a range between 7.1770 and 7.1970. In the longer run, USD has likely moved into a 7.1620/7.2200 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.06.16 21:24USD/JPY can potentially test 145.00 - UOB Group
US Dollar (USD) could potentially test 145.00 against Japanese Yen (JPY); the major resistance at 145.50 is unlikely to come under threat. In the longer run, USD is likely to trade in a range between 143.00 and 145.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.06.16 21:21Gold eases after hitting a two-month high amid escalating Israel-Iran hostilities
Gold (XAU/USD) is experiencing a mild pullback during the European session after reaching a two-month high of $3,452.72 in the Asian session on Monday.
New
2025.06.16 21:19JPY soft and underperforming ahead of BoJ Tuesday - Scotiabank
The Japanese Yen (JPY) is soft against the US Dollar (USD) and underperforming all of the G10 currencies in an environment of mild risk appetite, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.16 21:18USD/JPY: BoJ is coming up next - OCBC
Geopolitical escalation in Middle East saw safe haven proxies, including JPY strengthening last Friday. USD/JPY was last at 144.12 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
2025.06.16 21:13GBP flat into high risk week - Scotiabank
Pound Sterling (GBP) is entering Monday's NA session flat against the US Dollar (USD), a relative underperformer in an environment of modest risk appetite and mild USD weakness, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.16 21:07Copper prices are edging lower - ING
Copper edged lower after China's new-home prices fell the most in seven months, ING's commodity analysts Warren Patterson and Ewa Manthey note.
New
2025.06.16 20:59EUR up modestly, with focus on ECB/Fed outlook - Scotiabank
Euro (EUR) is up 0.2% vs. the US Dollar (USD) and a mid-performer among the G10, extending its recovery from last week's geopolitically-driven pullback, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.16 20:53NZD/USD surges to near 0.6040 as investors digest Middle East tensions
The NZD/USD pair is up 0.5% to near 0.6040 during European trading hours on Monday. The Kiwi pair strengthens as demand for riskier assets has increased, while tensions between Israel and Iran remain intact.
New
2025.06.16 20:51CAD retains a firm undertone but ignores crude swings - Scotiabank
The Canadian Dollar (CAD) retains a firm undertone against a generally softer US Dollar (USD). The CAD's performance since the outbreak of Israel/Iran hostilities last week is fairly middling among the major currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.06.16 20:50Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
