Forex. EUR/USD trading forecast and signal for today, April 28
On Tuesday, Euro fell slightly against Dollar to the level of 1.2070.
U.S. Consumer Confidence continued to improve in April. The Conference Board Consumer Confidence Index rose to 122 points from 109 in March. This value by a large margin exceeded the market forecasts of 113 points. Annual expectations for inflation remained unchanged at 6.7%. The Fed has repeatedly stated that it will not immediately respond to the high growth in consumer prices. The regulator plans to leave the rate unchanged for several years, even if inflation significantly exceeds the 2% target. Still, strong indicators support demand for Dollar, as they promise a rate hike, even in the distant future.
The Fed will release its monetary policy statement this evening, along with its interest rate decision. The volatility of the currency markets will increase after a quiet first half of the week. Fed Chairman Jerome Powell and his colleagues will have a tough time defending loose monetary policy in the face of high labor demand and rising price pressures. Still, the regulator is certain to maintain its current monetary policy stance. Any deviation from expectations will trigger a rally in USD against risky assets, including EUR.
EUR/USD Trading Signal
The forecast assumes an increase in EUR/USD to the resistance levels of 1.2100, 1.2120 and 1.2150.