EUR/USD Analysis Summary Today

• Overall Trend: Neutral stance with an upward bias.
• Today’s Euro/Dollar Support Levels: 1.1300 – 1.1240 – 1.1150.
• Today’s Euro/Dollar Resistance Levels: 1.1385 – 1.1430 -1.1500.

EUR/USD Trading Signals:

• Buy EUR/USD from the support level of 1.1255 with a target of 1.1400 and a stop-loss at 1.1160.
• Sell EUR/USD from the resistance level of 1.1440 with a target of 1.1200 and a stop-loss at 1.1520.

EUR/USD Technical Analysis Today:

Since the beginning of the week’s trading, the EUR/USD exchange rate has been stable and receiving support for stability around the 1.1300 level, ahead of today’s US central bank announcement, the most important for the markets this week, with the announcement at 9:00 PM Egypt time. This will be followed half an hour later by important statements from US central bank governor Jerome Powell. The EUR/USD price is currently stable around the 1.1367 level, and it has been recently observed that rallies have been met with selling interest. A reason for the euro’s recent failure to rise was the failure of Merz, the leader of the German Christian Democratic Union, to win a vote in the Bundestag that would have approved him as chancellor. Another vote may be held in the short term.

According to reliable trading company platforms, the EUR/USD pair is still trading above levels justified by interest rates alone, and the main question is whether the dollar discount is justified. In general, US data, tariff developments, and Asian currency market dynamics will remain crucial in the short term.

Recently, prominent US data has not indicated any significant deterioration in the economy at this stage, but the data is still lagging, and indicators such as freight transport suggest the potential for significant pressures on the horizon. Technically, the 1.130 level will remain the pivot point for the EUR/USD pair – and a decisive break below it could lead to a break of the 1.120 support level soon.

According to some Forex market experts, the EUR/USD pair continues to trade within its medium range of 1.12/upper 1.15 since early April. They are looking for near-term support below 1.13 and resistance above 1.14.

Trading Tips:

The EUR/USD will remain in a narrow range, and you will not find strong movement except after investors and markets react to today’s US central bank announcement.

According to the performance on the daily timeframe chart, the movement of technical indicators is in a neutral position awaiting further developments. The 14-day Relative Strength Index (RSI) is in the middle, between the overbought zone and the midline, indicating that bulls and bears are in a waiting position until factors supporting one of the directions emerge, although an upward movement is more likely. The 1.1400 resistance will remain an important catalyst for the bulls. At the same time, the MACD indicator is slightly leaning downwards.

EUR/USD trading will remain within its current range until the markets react to the US central bank’s announcement and Governor Jerome Powell’s statements, especially after Trump’s recent intervention in the bank’s policy directions and the threat to dismiss the governor, followed by a recent reversal of that stance. In addition to this, any developments on the ground regarding the US tariff war against global economies, including the Eurozone, will have the strongest impact on financial markets in general and on the performance of the EUR/USD currency pair in particular.

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May 7, 2025 – Written by Frank Davies

STORY LINK Euro to Pound Forecast: EURGBP Dips to 0.85 as BoE Cut Priced in

The Pound to Euro exchange rate has stabilised and has already priced in a likely rate cut from the Bank of England.

UK-EU negotiations on trade and other issues is seen as a positive.

The euro may be overvalued as it made strong gains even when the ECB were cutting rates aggressively.

Sterling has managed to make slight gains against the euro in recent weeks as the EUR/GBP exchange rate has faded from above 0.87 in mid-April, back to 0.85 support. This move was partially unwinding the strong gains the euro made in early April when market volatility spiked and it acted as a safe haven. However, there have been other factors driving the move, with positives for the pound and negatives for the euro both playing a part.

A Positive Background for Sterling

The BoE are very likely to cut this week, but this would only take rates in the UK down from 4.5% to 4.25%, considerably higher than the 2.4% offered by the ECB. Importantly, this cut is a measured step towards normalization of rates and is not driven by fears over unemployment or economic weakness. More cuts are likely to follow, but there is no expectation of aggressive cuts in the near-term.

“…Thursday should see the Bank of England cutting rates by 25bp. This is widely expected by consensus and fully priced into the Sonia curve. As discussed in our economist’s preview, we expect an 8-1 vote split (one vote for a 50bp cut) and no changes in forward guidance (future cuts to be “gradual and careful”),” noted ING on Tuesday.

This is a healthy backdrop for the pound, and quite different to the situation in the EU where the ECB is in a hurry to get to neutral rates below 2%.

While there have been concerns abouts cuts to government spending and a slowing economy, the UK has managed to sidestep most of the proposed tariffs from the US and is likely to strike a deal on 10% tariffs, the lowest possible under Trump’s current recommendations. Meanwhile, the UK and EU are negotiating a reset of their post-Brexit relationship, with a key summit scheduled for May 19, 2025. The talks will aim to reduce trade barriers, boost economic growth, and enhance cooperation on security, defence, and other areas, while navigating geopolitical challenges like U.S. tariffs under President Trump. A draft agreement emphasizes a “new strategic partnership” based on “free and open trade” and global economic stability.

This could be positive for the UK economy, but there are a number of potential hurdles. UK Prime Minister Keir Starmer has already set red lines: no return to the single market, customs union, or freedom of movement. However, the EU demands concessions, particularly on fishing and youth mobility, which some EU states like Poland see as non-negotiable. The talks are complicated by simultaneous UK efforts to secure a U.S. trade deal, with concerns that closer EU alignment could provoke U.S. tariffs.

Euro Could be Overvalued

The Euro-Dollar conversion rallied from a 2025 low of 1.01 to a high of 1.15 in a short space of time while EURGBP rallied from 0.82 to above 0.87. Considering this came during an aggressive rate cutting cycle from the ECB, the risk is that the euro has gone too far too fast and is relatively overvalued based on rate differentials.

It’s not as if the backdrop is rosy for the euro – tariffs are likely to weigh on an already fragile and stagnant economy. Indeed, the euro’s rally was not due to improving data and came in the wake of the German election and subsequent spending plans, both from Germany and other member states vowing to boost military spending. This should offer a bump to the economy, but the optimism may have been overdone. EURGBP at 0.85 looks around fair value for now.

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GBP/USD Forecast: Pound Sterling under bearish pressure ahead of Fed

After posting gains to start the week, GBP/USD edges lower and trades in negative territory below 1.3350 in the European session on Wednesday as investors gear up for the Federal Reserve’s (Fed) monetary policy announcements.

The US Dollar (USD) stays resilient against its peers midweek on improving risk mood. Washington confirmed that United States (US) Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s economic tsar He Lifeng in Geneva this Saturday, to kick off official talks with China. Read more…

GBP/USD expected to be between 1.3300 and 1.3400 – UOB Group

Pound Sterling (GBP) is likely to trade in a range vs US Dollar (USD), expected to be between 1.3300 and 1.3400. In the longer run, the current price movements are part of a 1.3240/1.3450 range-trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. 

24-HOUR VIEW: “Our view for GBP to trade with a downward bias yesterday was incorrect, as after dipping to a low of 1.3260, GBP soared, reaching a high of 1.3402. The subsequent pullback from the high amid overbought conditions suggests GBP is likely to trade in a range today, expected to be between 1.3300 and 1.3400.” Read more…

GBP/USD – Strategic sell idea [Video]

Fake breakout of the consolidation and rejection of the Pitchfork Median Trend line. Read more…

• The Euro has shown quite a bit of choppiness yet again during the session here on Tuesday, as we are just killing time and trying to sort out where to go next.
• All things being equal, it is worth noting that the 1.13 level has been short term support.
• And the 1.15 level above has been pretty significant resistance.

Ultimately, the 1.15 level is an area that you watch from a longer term standpoint. And it’s worth noting that recently over the last week or two, we’ve really seen a bit of hesitation. So I think that once we get through the FOMC and perhaps more importantly, the press conference, we might have a little bit more clarity.

If we break down from here, the 1.12 level is an area that I think a lot of people are going to watch. If we can break down below there, then it’s likely that the market goes searching to the 50 day EMA, all things being equal. This is a market that will continue to be noisy, but I think it’s getting exhausted unless of course, Jerome Powell says something that really rocks the markets.

Sideways Likely Without Help from the Fed

I think at best you get sideways action. If we can break above that reason high, the market is likely to go looking to the 1.17 level followed by the 1.20 level. The Euro of course does have the benefit of Germany exiting recession while the United States is thought to be going into recession. But one thing that’s worth noting is that the jobs markets are a little stubborn at the moment.

So, we’ll have to see how things play out, all things being equal, it’s neutral. But once we get out of this little, tiny range, then we might have a little bit more in the way of clarity.

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Copper price reached the initial positive target by reaching $4.7400 level, which forces it to form sideways fluctuated moves, waiting for the extra positive momentum from the main indicators, to confirm renewing the bullish attempts.

Reminding you that the stability of the moving average 55 near the initial support at $4.5400 level supports the attempts of renewing the bullish attempts, which might target $4.8200 level, then attempts to press on the barrier at $4.9000.

The expected trading range for today is between $4.6000 and $4.8100

Trend forecast: Bullish

Copper price reached the initial positive target by reaching $4.7400 level, which forces it to form sideways fluctuated moves, waiting for the extra positive momentum from the main indicators, to confirm renewing the bullish attempts.

Reminding you that the stability of the moving average 55 near the initial support at $4.5400 level supports the attempts of renewing the bullish attempts, which might target $4.8200 level, then attempts to press on the barrier at $4.9000.

The expected trading range for today is between $4.6000 and $4.8100

Trend forecast: Bullish

The USD/JPY currency pair is showing a bearish trend that began on July 3, 2024, and is expected to continue declining toward the 136.50 level. In the short term, the price movement since the March 28, 2025 high is forming a zigzag pattern, according to Elliott Wave analysis.

From the March 28, 2025 high, the decline in wave (A) reached 139.89. This was followed by a corrective wave (B), which also unfolded as a zigzag. Within wave (B), the price rose to 144.03 (wave A), then dipped to 141.95 (wave B). Afterwards, it climbed to 145.90 (wave C), completing wave (B). The pair has since turned lower, starting wave (C).

Wave (C) is currently developing as an impulse pattern in Elliott Wave terms. From the May 2, 2025 high, the price dropped to 143.72 (wave (i)), then rallied to 145.08 (wave (ii)). The decline resumed, reaching 142.34 (wave (iii)). A corrective rally in wave (iv) is believed to have finished at 143.30. The pair is now expected to decline further to complete wave (v). This will finalize wave ((i)) in the larger structure. After this, a corrective rally in wave ((ii)) should occur, partially recovering from the May 2, 2025 high, before the downward trend resumes.

In the near term, as long as the high at 145.90 holds, any upward movements are likely to be limited and fail in a pattern of 3, 7, or 11 swings, leading to further declines.

USD/JPY 60 minute Elliott Wave chart

USD/JPY Elliott Wave [Video]

May 6, 2025 – Written by David Woodsmith

STORY LINK Pound Sterling to Dollar Forecast: GBP Price Eyes 1.35 Resistance

The Pound US Dollar (GBP/USD) exchange rate advanced on Tuesday, in advance of the Federal Reserve’s interest rate decision on Wednesday.

At the time of writing, GBP/USD was trending near $1.3324. Up approximately 0.2% from the day’s opening level.

The US Dollar (USD) drifted lower on Tuesday amid investor caution ahead of the Federal Reserve’s imminent policy announcement.

With interest rates expected to remain unchanged, market attention is focused on the potential tone Fed Chair Jerome Powell’s will strike in his press conference and any clues he may drop about future monetary policy.

USD investors will be watching closely to see if the Fed expresses concern over slowing economic momentum and hints at the possibility of rate cuts in the months ahead.

At the same time, anxieties over US President Donald Trump’s trade policy also limited USD, following complications in talks with Japan.

Negotiations hit a roadblock as Japan rejected any proposal that maintained existing tariffs, a blow to hopes of a quick resolution.

Hopes for a refreshed UK-EU trade relationship helped to underpin the Pound (GBP) on Tuesday.

GBP investors are hopeful that a new ‘strategic partnership agreement’ to be signed at a summit on 19 May will lead to stronger economic ties between the UK and the continent.

This could offer a much-needed boost to the UK economy, although observers also warn it could complicate UK-US trade negotiations.

Looking ahead, the US Federal Reserve’s rate decision will act as the main catalyst for movement in GBP/USD over the coming sessions.

While a rate hold is priced in, attention will turn to Powell’s comments and whether the Fed signals a dovish shift.

However, President Trump’s reaction could generate just as much volatility. Any renewed criticism of the central bank or calls for immediate rate cuts might reignite fears over Fed independence, potentially dragging the US Dollar lower.

Meanwhile, investors may adopt a wait-and-see stance on the Pound ahead of the Bank of England’s interest rate decision on Thursday, limiting GBP movement in the short term.

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USD/JPY Technical Analysis

The dollar has fallen pretty significantly against the Japanese yen and clearly it looks like people are looking for a little bit of safety here. At this point, I still think we’re in the process of trying to do something about the whole idea of whether or not the Bank of Japan will be able to tighten their monetary policy, which I don’t think they’re going to. They somewhat blinked.

Furthermore, the US dollar in the FOMC will have a major say during the session on Wednesday. The interest rate differential still favors the dollar. And if they sound more hawkish than dovish, that could very well have an effect on this pair as well, sending it higher. I think the next 24 hours though, we sat sideways.

AUD/USD Technical Analysis

The Australian dollar continues to hover at very high levels, but I think we’ve got a situation where you have to look at this through the prism of a potential breakout. But again, I think we have to get through the FOMC before we can truly believe that a break above the 0.65 level opens up a much bigger move. Short term pullbacks, I think, see significant support at the 50 day EMA.

For a look at all of today’s economic events, check out our economic calendar.

May 6, 2025 – Written by Frank Davies

STORY LINK Pound-to-Euro Forecast: GBP Price Risk on “More Dovish” BoE

The Pound to Euro exchange rate (GBP/EUR) has again failed to sustain a move above 1.1765, but found support on dips and settled just above 1.1750. A plethora of fundamental factors continue to pummel currency markets, including this week’s Bank of England (BoE) interest rate decision.

MUFG noted mixed forces on the Pound; “A more dovish policy update from the BoE poses downside risks for the GBP in the week ahead, and could deliver a setback after the recent rebound.”

It added; “On the other hand, the GBP will derive support if financial market volatility continues to ease encouraged by building investor optimism over trade deals/agreements to reverse President Trump’s tariff plans especially involving China and the UK.”

ING does see scope for GBP/EUR to make gains once long Euro positions are cut; “We think EUR/GBP may stabilise around 0.850 for now as a well-telegraphed BoE cut should not trigger major moves. Ultimately, the euro’s greater exposure to potential positioning adjustments means the risks remain skewed to the downside for EUR/GBP.”

The current yield structure is continuing to underpin the Pound, but there is speculation that the BoE will be more aggressive in cutting interest rates.

Nomura expects such a dovish BoE shift and forecasts a GBP/EUR retreat to 1.15 at the end of June.

The UK PMI business confidence index was revised marginally higher to 49.0 for April from 48.9 in March, but still below the March figure of 52.5.

Overall business confidence dipped to the lowest level since October 2022.

Costs increased at the fastest rate since July 2023 while prices charged increased at the fastest rate for close to two years.

Tim Moore, Economics Director at S&P Global Market Intelligence, commented; “Business expectations for the year ahead fell sharply as service sector firms braced for an extended period of global economic turbulence and heightened recession risks.”

The PMI data illustrates major difficulties faced by the BoE with evidence of weaker demand at the same time as increased inflation pressures.

There are very strong expectations that the BoE will cut interest rates by 25 basis points to 4.25% this week.

There is also speculation that the Monetary Policy Committee (MPC) will change its guidance and suggest the possibility of a faster pace of rate cuts over the next few months.

MUFG commented; “One way for the BoE to signal that they are more open to the possibility of cutting rates again sooner perhaps at the following MPC meeting in June would be to drop guidance that “gradual” further withdrawal of monetary policy restraint is appropriate.”

Dovish guidance would tend to hurt the Pound.

The Euro-Zone PMI services sector was revised to 50.1 in the final April reading from the flash figure of 49.7, but still below the March figure of 51.0.

As far as prices are concerned, cost pressures dipped to a 5-month low with the slowest rate of output charges seen in 2025. The data will maintain pressure for further ECB interest rate cuts.

There was also a notable surprise in Germany as CDU leader Merz failed to gain a majority to be Chancellor in the Bundestag vote which will create further uncertainty.

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TAGS: Pound Euro Forecasts