The outlook for the US dollar is weakening, drawing on shifting market expectations for the Federal Reserve's (Fed) policy. The chances of an interest rate dropping to the 4.00%–4.25% range have gone up a lot, based on the 30-day federal funds futures, which have transitioned from 81.6% last week to 88.9% as of Tuesday's opening. This monitoring tool reflects market sentiment regarding potential regulatory moves. Investors now anticipate a larger rate cut, suggesting that the greenback is losing strength against other currencies.
In light of this, EURUSD is poised for further gains. The pair is currently consolidating within a narrowing triangle, with key resistance at its bottom of 1.1737. A breakout above this level would signal an upward move toward 1.1790. If the price pushes off the rising trendline support at 1.1660, it could be a great time to go long.
The overall recommendation is to buy EURUSD when quotes hit 1.1660. Profits are taken at 1.1790. Stop loss is placed at 1.16350.
The volume of your open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
