The EURUSD pair is trading within a downward correction and is now consolidating at 1.0400. Today, the market will focus on the Federal Reserve interest rate decision. Find out more in our analysis for 29 January 2025.
EURUSD forecast: key trading points
- Current trend: an upward correction
- The market is awaiting the US Federal Reserve rate decision today
- EURUSD forecast for 29 January 2025: 1.0350 and 1.0500
Fundamental analysis
The ECB rate decision will be announced tomorrow, with another 25-basis-point cut expected after four cuts in 2024. Investors will also be closely monitoring any signals from the central bank about the rate outlook in the coming months.
Today, the Federal Reserve will make its rate decision public. Most experts expect the regulator to pause and keep the interest rate at 4.5%. The quotes can be impacted by the Federal Reserve’s accompanying statement, which may shed light on future monetary policy changes.
EURUSD technical analysis
On the H4 chart, the EURUSD rate is undergoing an upward correction after forming a local trough in the 1.0177-1.0200 support area. This week, the bulls failed to break above the 1.0530 resistance level and retreated, with the price currently consolidating in the area around 1.0400.
Today’s EURUSD forecast suggests that the pair will have the potential for further upward correction and growth to the 1.0600 resistance level if the bulls break above the 1.0530 resistance level. However, if the bears gain a foothold below 1.0400, the upward correction could be complete and the pair could continue to decline, with the first target at the 1.0177-1.0200 support area.
Summary
The EURUSD pair suspended its upward correction, with the price currently consolidating around 1.0400. Market participants are awaiting the Fed and ECB rate decisions.
Source: Roboforex
