Those looking for a stronger dollar in the market may feel disappointment if the EUR/USD finds significant support in the 1.0825-1.0850 range. Consequently, a potential rebound may not occur if the Federal Reserve (Fed) fails to demonstrate a strong stance against the dollar, contrary to market expectations of a rate cut in March.
Determining whether the euro will appreciate against the dollar is more complicated because the Federal Reserve is currently analyzing what will happen with rates. It is essential to highlight that, according to several analysts, the government must lower interest rates to lower and control inflation in the country.
However, relaxing these measures may potentially affect the price of the EUR/USD pair and cause it to reach its lowest levels. Similarly, the euro has been quiet even after the European Central Bank’s announcement that interest rates would remain unchanged until at least June.
Technical analysis EUR/USD today, January 30
The EUR/USD is currently near the support level located at 1.0815. If this support level cannot hold, it will likely generate a quick pullback to the lows near 1.0723. Technically speaking, the success or failure of the defense of the support above zone depends solely on two events that will happen this week. The Federal Reserve meeting, its decisions, and the release of the labor market report also in the US.
If the Fed reverses the estimates in front of the rate cuts and the employment numbers beat expectations, the dollar could see a further rise in its price. And could break below the support level at 1.0825.
