Euro/US dollar amid the growing market mood

• EUR/USD decreases sharply to approximately 1.0420, as the Safe Sequality Grandfism in the US dollar may be enhanced in a risk environment.
• The Federal Reserve is expected to leave interest rates unchanged, while the European Central Bank is scheduled to cut 25 basis points, both of which are this week.
• The American treasury proposes a 2.5 % tariff globally, which will increase at the same pace every month.

Euro/US dollar drops to approximately 1,0420 in the European session on Tuesday. The main currency pair weakens the US dollar strengthening (USD) amid global sales in technology, energy and data center, which increased its safe attractiveness. The US dollar index (DXY), which tracks the value of Greenback for six main currencies, rises to approximately 108.00.

Investors throw technology shares as a model for low -cost artificial intelligence in Chinese (AI), and the dominance of current artificial intelligence players and relevant entities worldwide has challenged.

Meanwhile, deepening the uncertainty about the global tariff plan for President Trump Trump and the declaration of the Federal Reserve’s monetary policy (Fed) on Wednesday also strengthened the US dollar. Shortly after the selection of the US Treasury Secretary, Scott Payet proposed a plan to impose a 2.5 % global tariff plan, which will increase the gradual month until Trump’s directives are 20 %.

Market experts believe that the gradual introduction to definitions will give more time to the United States to negotiate better and better deals with its trading partners.

On the Monetary Policy Front, the Federal Reserve is sure to leave interest rates unchanged within 4.25 % -4.50 %. Therefore, investors will focus mainly on the press conference of the Federal Reserve Program, after the policy decision decision -making. Macquarie analysts expect that Powell is unlikely to make a lot in this regard other than emphasizing “relying on data in future decisions” while highlighting “uncertainty about the neutral rate.”

Digest Market Mark: The euro/US dollar weakens with FED-ECB cash decisions in the lead center

• Yurram Euro/the US dollar amid power in US dollars. The euro (EUR) is cautious against its main peers, as investors await the interest decision at the European Central Bank (ECB), which will be announced on Thursday. Investors expect the European Central Bank to reduce the rate of deposit facilities by 25 BPS to 2.75 % amid economy expectations and slow confidence in the euro area by 2 %.
• Given that traders have been fully priced in a 25 basis interest rate from the European Central Bank, investors will pay close attention to President Christine Lagarde’s press conference to know the influence of Trump’s tariff, if imposed, on economic and monetary policy expectations.
• Christine Lagarde last week at the World Economic Forum (WEF) in Davos warned that “Europe should” expect what will happen “and be” ready to respond “, as Trump’s tariff will be” selective “and” focused “.
• CITI analysts expect the European Central Bank to reduce interest rates by 25 basis points at each meeting “to at least summer”.

Technical Analysis: EUR/USD corrected from 50 days

EUR/USD has been struggling about the 50 -day SIA moving average (EMA), which has been circulating about 1.0456 two days ago, the last two trading on Tuesday. The main currency pair is correct to approximately 1.0420 after failing to extend his upper move over the main resistance of 1.0530. The expectations near the period remain firm as the EMA couple holds for 20 days, which trades about 1.0390.

On the downside, the downtown line of September 30, 2024 of 1.1209 will be the main support for the euro bulls.

The 24 -day relative index (RSI) is struggling to climb over 60.00 obstacles, indicating that the trend will be side.

If we look down, the lowest level on January 20 of 1.0266 will be the main support area of ​​the husband. On the contrary, the highest level on December 6 of 1.0630 will be the main barrier of euro bulls.