21.06.202405:21 Forex Analysis & Reviews: Forecast for EUR/USD on June 21, 2024

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EUR/USD

Yesterday, as expected, the euro traded lower after the pound fell due to the Bank of England meeting, and while the stock market also declined. The single currency lost 40 pips, breaking through the support at 1.0724. The target range of 1.0636/50 is now open, but we expect the euro to surpass this range and head towards 1.0595. If the price gains momentum, it may even reach 1.0520.

The euro cannot fall rapidly due to the commodity markets, which showed good growth yesterday, but it received support from the Swiss National Bank, which unexpectedly lowered its rate from 1.50% to 1.25%, surprising market participants. Also, the US released weak economic indicators on Thursday. Today's economic reports do not bode well for the dollar; the Eurozone composite PMI is forecasted to increase from 52.2 to 52.5 in June, while the PMI for the US services sector is expected to fall from 54.8 to 53.7.

On the 4-hour chart, the price turned down from the resistance of the MACD line. After this reversal, the price settled below the balance line, and the Marlin oscillator settled below the zero line. The trend has turned bearish on both charts, but a notable decline will likely occur next week.

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