Investing.com – EUR/USD trend remains uncertain at the start of the week in forex, but the hesitation may end in the coming sessions as the currency pair faces several events macroeconomic capital.
Recall that the Euro Dollar held in a narrow range last week, when the economic calendar was light, and that traders preferred to play it safe before the meetings of the Fed and ECB which will take place this week.
Indeed, we will wait for the Fed's rate decision on Wednesday evening, and that of the ECB on Thursday afternoon. Before that, forex traders should also keep a close eye on the US inflation figures for May on Tuesday.
The ECB is expected to raise rates another 25 basis points, while the Fed is expected to refrain from raising rates, according to the Investing.com Rate Barometer. However, if on paper this situation seems favorable for the EUR/USD, it is important to note that this scenario is undoubtedly already largely priced in.
The attention of traders interested in the EUR/USD should therefore rather turn to the indices which will provide the central banks for their next decisions, knowing that as far as the Fed is concerned, investors are currently expecting the central bank to rise by new rates from the July meeting after the June break.
Technical thresholds to watch on EUR/USD
From a graphical point of view, it should be noted that the EUR/USD is facing a resistance zone formed by last week's high at 1.0785, the psychological level at 1.8, and the 100-day MA at 1.0805.
On the downside, 1.07 is the next support to consider, before the May 31 low at 1.0635, then 1.06, and finally the 200-day MA at 1.0520 and the psychological threshold at 1.05.
EUR/USD: The Fed and the ECB will determine the fate of the Euro Dollar this week
