EUR/USD – The pair may go to consolidation phase ahead of ECB, Fed decisions

Bullish View

Take Profit: 1.1100
Stop Loss: 1.0940
Timeline: 1-2 days

Bearish View

Sell Stop: 1.0980
Take Profit: 1.0900
Stop Loss: 1.1100

The pair was seen moving sideways on Monday morning as the focus has shifted to ECB and Fed as they are about to release key interest rate decisions during this week. There were no decisions that were taken during April but analysts are still not so sure about the policy that the ECB and Fed will go for during this meeting. But they still expect that the banking crisis may put the heads under pressure which might result in the Fed going for a 0.25 hike followed by a strategic pause. As the Eurozone seems to be doing better than the US, analysts are more hopeful for a 0.25 rate hike from the ECB.

For technical analysis, we need to consider the fact the pair was experiencing a bullish trend for quite some time and managed to climb up from the March low of 1.0520 to a fresh high of 1.1092 in April. The MACD is a little above the neutral point as we see the pair moving slightly above the 50-period MA. The pair is sitting at a middle level after forming an ascending channel. The labour day holiday will likely keep the EUR/USD pair stuck in a tight range for the day. This week, the pair will also get affected by key economic data releases as flash inflation numbers of Europe will soon be released and US NFP data is also set for release this week.