EURUSD is at risk after information is revealed about FOMC, SNB

EURUSD NEWS AND ANALYSIS
- ECB officials eye June meeting for first rate cut, SNB delivers a surprise cut
- Dollar drop appears short-lived as EUR/USD heeds resistance

ECB OFFICIALS EYE JUNE MEETING FOR FIRST RATE CUT, SNB DELIVERS A SURPRISE CUT
Despite the EU and US having different growth prospects, the ECB remains cautious about cutting rates. They are eyeing up the June meeting as significant. Wage growth has been a focus, but it seems the ECB is running out of reasons to delay rate cuts. Today, the Swiss National Bank unexpectedly cut rates by 25 bps to normalize monetary policy. This decision was prompted by challenges in the external environment, the appreciation of the Swiss Franc, and inflation below two percent expected to continue next year and in 2026.

DOLLAR DROP APPEARS SHORT-LIVED AS EURUSD HEEDS RESISTANCE
Yesterday's dovish Fed announcement led to a decline in expectations of a 25 basis point hike, causing the dollar to drop. As a result, EUR/USD saw gains and tested resistance levels at 1.0942 and 1.0960, which correspond to Fibonacci retracements from the recent decline. The 50 and 200-day simple moving averages and the support level at 1.0830 are important factors to consider.

Comment:

Trade active:

Price is moving exactly as strategy

Comment:

🟢The euro zone economy returns to growth for the first time in nearly a year with the expansion of the services sector.

Comment:

The driving force for recovery was the selling pressure on the USD when the DXY index dropped to 105.78. However, the upside prospects for EURUSD may be quite limited as the market is expecting that the ECB will cut interest rates in June, putting pressure on the Euro.

Comment:

How will EUR/USD fluctuate after breaking the important resistance zone 1.07?

On the daily chart, EURUSD has broken through the key resistance level at 1.07 and is currently testing a failure at the intersection of the 50% Fibonacci retracement and the 21 moving average. This is an area where sellers are intervening to Prepare to push prices down.