The EURUSD pair is attempting to extend gains near 1.1350. The US dollar may strengthen due to geopolitical factors. Find out more in our analysis for 7 May 2025.
EURUSD forecast: key trading points
- The EURUSD pair halted its upward move and is searching for direction ahead of the Fed rate meeting
- Market focus is on Federal Reserve Chairman Jerome Powell’s comments for policy outlook clues
- EURUSD forecast for 7 May 2025: 1.1350
Fundamental analysis
The EURUSD rate is hovering around 1.1350 on Wednesday. The market is showing uncertainty: after three consecutive sessions of gains, the pair is now at risk of turning lower as the US dollar finds fresh support.
News has emerged that US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese counterparts in Switzerland to discuss economic and trade issues.
This has sparked cautious optimism around the potential launch of negotiations that could ease the burden of reciprocal tariffs.
Investors are awaiting the outcome of today’s Federal Reserve policy meeting. Interest rates are expected to remain unchanged.
Traders will pay close attention to the comments from Federal Reserve Chairman Jerome Powell. His remarks could provide insight into the future path of interest rates amid growing political pressure to ease monetary policy.
The EURUSD forecast is neutral.
EURUSD technical analysis
The EURUSD H4 chart shows mixed conditions, suggesting consolidation around 1.1350. Should a negative impulse emerge, the pair may drop to 1.1304, with a breakout below this level opening the way for a move towards the lower boundary of the range at 1.1265. Conversely, if a bullish impulse takes hold, the EURUSD pair could advance to 1.1382 and possibly test the 1.1424 level.
Summary
The EURUSD pair has stalled after recent gains and is beginning a modest retreat, although the movement remains within a narrow sideways range. The EURUSD forecast for today, 7 May 2025, suggests continued consolidation around the 1.1350 level.
Source: Roboforex
