EURUSD maintains uptrend ahead of Fed decision

The EURUSD pair is showing reduced volatility on Monday. Amid ambiguous macroeconomic statistics from the US and continued uncertainty in international trade, investors are in no hurry to open positions.

US President Donald Trump confirmed that he does not intend to dismiss Federal Reserve (Fed) Chairman Jerome Powell before his term ends in 2026. Nevertheless, Trump reiterated his call for the Fed to cut interest rates.

Friday's US employment data surpassed expectations. In April, 177,000 new jobs were created, compared to projections of 130,000. This data made market participants revise their expectations regarding the Fed's monetary policy. The rate decision will be announced Wednesday.

Today, investors are focused on the release of the ISM index of business activity in the services sector, which could impact short-term dollar sentiment.

Earlier, the euro received limited support from strong inflation statistics in the eurozone. The harmonized consumer price index (CPI) came in at 2.2% year over year, surpassing forecasts. Services sector inflation accelerated to 3.9%, and core CPI rose to 2.7%. These figures reinforced expectations of a 60-basis-point rate cut by the European Central Bank (ECB) before the end of the year. However, persistent economic uncertainty in the region is curbing demand for the euro.

Technical analysis shows that EURUSD is still trading within an ascending channel on the H4 timeframe. Currently, the price is approaching the lower boundary of the channel. A rebound from this boundary could confirm the continuation of the bullish trend. The Bulls Power histogram (with default settings) remains above zero, reinforcing the growth signal.

Signal:

Short-term prospects for EURUSD suggest buying. 

The target is at the level of 1.1570.

Part of the profit should be taken near the level of 1.1430.

A stop-loss could be placed at the level of 1.1150.

The bullish scenario is short-term, so trade volume should not exceed 2% of your balance.