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02.05.202405:20 Forex Analysis & Reviews: Forecast for EUR/USD on May 2, 2024

EUR/USD

Yesterday's FOMC meeting turned out to be hawkish in terms of Federal Reserve Chair Jerome Powell's statements at the press conference. Powell said the next rate cut may not happen anytime soon, as the central bank needs solid evidence of at least three months of cooling inflation, and currently, the Fed sees no progress in reducing inflation.

As a result of this meeting, the euro and other counter-dollar currencies rose. However, this growth is deceptive – there was almost panic in other markets; the S&P 500 showed a range of 1.72%, closing the day down 0.34%, oil fell 3.43% (though with additional data on inventory growth), the yield on 5-year US treasuries dropped from 4.72% to 4.60%, and gold rose 1.33%.

Exchange Rates 02.05.2024 analysis

As a result of yesterday's growth, the euro reached the nearest resistance at 1.0724. This morning, the price is below this level. The signal line of the Marlin oscillator has come very close to the boundary of the bullish territory. According to the main scenario, we expect the oscillator to turn downwards from there. We expect the price to be in the target range of 1.0636/56 in a consolidated state with further prospects for decline towards the target of 1.0567.

Exchange Rates 02.05.2024 analysis

On the 4-hour chart, Marlin has managed to rise above the zero line, while the price has returned below the balance indicator line. If the euro is currently holding up against the overall risk aversion, tomorrow's US employment will likely provide impetus.

*Analiza tržišta koja se ovde nalazi namenjena je boljem razumevanju tržišta i ne pruža instrukcije za vršenje trgovanja.

Laurie Bailey,
Analytical expert of InstaSpot
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