Forex Technical Analysis: Main Pairs Forecast of the Week
The latest forex technical analysis indicates potential price movements for major currency pairs. Here’s a breakdown of the forecasts:
The EUR to USD currency pair failed to break below the 1.0800 level and found support, initiating a new wave of growth towards 1.0990. The pair may rise to 1.0960, followed by a decline to 1.0900. An increase to 1.1000 is expected, with the possibility of further continuation.
The GBP to USD pair found support at 1.2630 and is likely to rise to 1.2826. Afterward, a correction to 1.2711 may occur, followed by another increase to 1.2935.
The USD to JPY pair has corrected to 139.88 and is currently forming a new structure of growth towards 141.77. Upon reaching this level, a correction to 140.40 might follow. The pair could then rise to 142.00.
The USD to CHF pair completed a wave of decline to 0.8922 and is now forming a consolidation range below this level. A breakout below the range of 0.8877 may occur, followed by a rise to 0.9090.
The AUD to USD pair formed a link of growth to 0.6888. A correction to 0.6840 is possible, and then a new link of growth may develop towards 0.6922.
Euro Surges to 15-Year High Against Yen, Five-Week Peak Versus Dollar as ECB Raises Rates
The euro reached a 15-year high against the yen and a five-week high against the dollar following the European Central Bank’s (ECB) decision to raise interest rates for the eighth consecutive time. The ECB’s move, which lifted rates by 25 basis points to 3.5%, was in line with expectations and aimed at bringing eurozone inflation to its medium-term target of 2%.
ECB President Christine Lagarde stated that another rate hike in July is highly likely, signaling the central bank’s commitment to tighter monetary policy. The euro’s surge was also supported by upward revisions to inflation forecasts for this year and next.
Yen Weakens as Bank of Japan Maintains Dovish Stance and Soft Data Impacts Dollar
The yen experienced a decline after the Bank of Japan (BOJ) decided to maintain its ultra-low interest rates. Besides, according to Forex technical analysis, forecasted a slowdown in inflation later in the year. The BOJ’s dovish stance diverges from the hawkish policies adopted by central banks worldwide.
Meanwhile, the US dollar faced soft economic data, including stagnant retail sales and unchanged jobless claims. These factors contributed to a decline in the dollar against its major counterparts.
The US dollar rate is consolidating after suffering significant losses against major currencies. Investors are closely watching for comments from Federal Reserve officials, as well as the release of the preliminary University of Michigan’s Consumer Sentiment Survey for June.