The current EUR/USD exchange rate forecast remains positive as bulls dominate the market, as long as the price stays above the 100-hour Simple Moving Average (SMA). This positive momentum is supported by a generally weaker US dollar and the technical setup that anticipates further gains. Here are some key points that shed light on the current situation and future expectations for the EUR/USD currency pair:
Current Situation
- Technical Analysis: The price remains above the 100-hour SMA, which is a positive technical signal and strengthens the bulls. As long as this trend persists, the price is expected to continue rising.
- Weaker US Dollar: A generally weaker US dollar supports the positive momentum of the EUR/USD. This may be due to various factors such as weaker economic data or monetary policy decisions from the US Federal Reserve.
Forecasts for 2025
- Price Range: Analysts expect a price range for EUR/USD between 1.0960 and 1.1790 for 2025, with some forecasts even reaching up to 1.366.
- Monthly Forecasts: For June 2025, a price between 1.135 and 1.160 is expected, with an average value of about 1.088 to 1.093.
- Long-term Expectations: Some analysts predict that the price could rise to about 1.2133 by the end of 2025, while others expect a correction to around 1.0770 or 1.1260.
Influencing Factors
- Monetary Policy: The actions of the European Central Bank and the US Federal Reserve will significantly influence the exchange rate. Changes in interest rates or monetary policy can greatly affect the exchange rate.
- Inflation Rates and Employment: The inflation rates and the employment situation in Europe and the USA are also important factors that can influence the exchange rate.
- Geopolitical Changes: Geopolitical events can also influence the exchange rate by strengthening or weakening confidence in the currencies.
In summary, the EUR/USD forecast remains positive, supported by technical indicators and a weaker US dollar momentum. However, future developments will depend heavily on monetary policy decisions and economic indicators.