The EURUSD rate corrected towards 1.0400 amid the release of the US Federal Reserve’s January meeting minutes. Find out more in our analysis for 20 February 2025.
EURUSD forecast: key trading points
- Market focus: the eurozone’s Consumer Confidence Index for January is scheduled for release today; the index is expected to decline by 14 points
- Current trend: consolidating in a sideways range
- EURUSD forecast for 20 February 2025: 1.0400 and 1.0500
Fundamental analysis
The Federal Reserve’s January meeting minutes released yesterday noted that the high level of current economic uncertainty requires a cautious approach when considering additional adjustments to monetary policy. The regulator also paid attention to the risks of rising inflation in the US.
The presented minutes confirm the previous comments by Fed’s Chairman Jerome Powell that the Federal Reserve would be in no rush to further lower interest rates and would pause its monetary easing cycle. Investors currently expect to see two rate cuts (25 basis points each) by the end of 2025.
EURUSD technical analysis
On the H4 chart, the EURUSD rate is undergoing a downward correction after rebounding from the 1.0500-1.0530 resistance area. The quotes have found support from buyers at 1.0400 and are now consolidating in the sideways trading range between 1.0200 and 1.0530. The direction of the price movement out of the range will determine further prospects for the pair’s moves.
The EURUSD forecast for today suggests that the pair still has the potential for growth to the 1.0530 resistance level if the bulls stay above the 1.0400 support level. However, if the bears push the quotes below 1.0400, the pair could decline further to the 1.0300 support level.
Summary
The EURUSD pair fell to 1.0400 amid the release of the US Federal Reserve’s January meeting minutes. The quotes are trading in the sideways range between 1.0200 and 1.0530, with a breakout out of the range indicating the direction of a new impulse in the pair’s movements.
