EUR/USD flattened on Monday, churning between 1.1400 and 1.1300.
The Euro’s multi-session recovery against the Greenback could be poised for a pause.
Another rate call from the ECB is on the cards this week, markets are broadly expecting a defensive quarter-point rate cut.
EUR/USD spun in a messy circle on Monday, touching the 1.1400 and 1.1300 levels before settling somewhere in the midrange. The US Dollar continues to soften across the board following the Trump administration’s latest about-face on its own tariff threats, but market sentiment remains tepid as investor fears of continued trade tensions simmer in the background.
Tuesday will bring a smattering of European mid-tier sentiment indicators, followed by US Retail Sales data slated for Wednesday. However, the key schedule item for EUR/USD this week will be the European Central Bank’s (ECB) latest rate call on Thursday.
Markets are overwhelmingly anticipating another quarter-point rate trim from the ECB this week as policymakers brace for steepening economic fallout from the Trump administration’s ever-changing tariff policies.
EUR/USD price forecast
EUR/USD price action has been plagued by halting stop-and-start momentum, making jerky bullish progress ever since piercing the 200-day Exponential Moving Average (EMA) near 1.0650 in early March. Technical bias still favors bidders for the time being, but technical oscillators are beginning to flash warning signs of overbought conditions.
EUR/USD daily chart
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