Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Forex Signal: Steady Ahead of Jerome Powell Speech

By Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

EUR/USD stable ahead of Powell speech; bullish view suggests buying with target at 1.0810, stop-loss at 1.0745; bearish option involves selling with goal at 1.0730, stop-loss at 1.0800.

Bullish view

  • Buy the EUR/USD pair and set a take-profit at 1.0810.
  • Add a stop-loss at 1.0745.
  • Timeline: 1-2 days.

Bearish view

  • Sell the EUR/USD pair and a take-profit at 1.0730.
  • Add a take-profit at 1.0800.

EUR/USD Signal Today- 3/4: Steady Before Powell Talk (Graph)

The EUR/USD rate drifted upwards on Tuesday even after some encouraging European inflation numbers. It also rebounded after the important statements from Mary Daly and Loretta Mester who are Federal Reserve officials. It rose to 1.0778 on Wednesday morning, up from the weekend low of 1.0725.

European inflation is easing

There are signs that Europe’s inflation is easing at a faster pace than in the United States. A report by the German statistics agency showed that the country’s inflation rose by just 0.4% in March, lower than the median estimate of 0.5%.

The German inflation rose to 2.3% in March after rising by 2.7% in the previous month. That increase was also lower than the expected 2.4%. These numbers mean that the ECB is achieving its inflation target. For example, in Italy, the headline CPI rose to 1.3% in March, much lower than its pandemic high of 11.8%.

Eurostat, the European statistics agency, will publish the preliminary March inflation report on Wednesday. Economists expect the data to show that the bloc’s inflation retreated from 2.6% in February to 2.5% in March. Core inflation is expected to drop to 3.0%.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Therefore, there is a possibility that the ECB will start cutting interest rates earlier than the Fed since the European economy is not doing well. A report by S&P Global showed that the manufacturing sector remained in a contraction zone in March.

Meanwhile, Mary Daly and Loretta Mester said that the Fed would start cutting rates later this year if the data is supportive. Daly expects the bank to deliver three cuts as the officials signalled in the last monetary policy meeting.

The EUR/USD pair will next react to a statement by Jerome Powell and the upcoming ISM non-manufacturing PMI report.

EUR/USD prediction

The EUR to USD pair formed a small doji pattern on Tuesday, triggering a strong comeback that erased most of the Monday losses. Still, on the 4H chart, the pair has remained below the 50-period Exponential Moving Average (EMA).

It also remained below the Woodie pivot point level at 1.0800. The Klinger Oscillator has pointed upwards. Therefore, the pair will likely continue rising on Wednesday ahead of the Jerome Powell statement.

If this forecast is accurate, the pair will likely rise and retest the Woodie pivot at 1.0810 and then resume the recent downtrend.

Ready to trade our daily Forex signal? Check out the best forex brokers in Europe worth using. 

Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

Most Visited Forex Broker Reviews