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FX.co ★ Forecast for EUR/USD on June 16, 2022

Forecast for EUR/USD on June 16, 2022

On Wednesday, the US Federal Reserve raised its base rate from 1.00% to 1.75%, in line with bold expectations. The majority of investors expected an increase to 1.50%. The sharp increase in the rate led to massive purchases of US government bonds, the yield on 5-year securities fell from 3.60% to 3.37%, which led to the fall of the dollar instead of the expected growth.

Forecast for EUR/USD on June 16, 2022

Yesterday, the euro traded within the range of target levels 1.0340-1.0493. Its growth is visually perceived as a correction. We believe that the imbalance of the single currency due to a strong rate hike will end today, so we are waiting for the closing of the day with a decrease. And then we are waiting for the price to leave under the support of 1.0340 and advance to 1.0170.

Forecast for EUR/USD on June 16, 2022

On the four-hour chart, the Marlin Oscillator shows the intention to turn down from the border with the growth territory. It is very similar to the fact that the oscillator is forming a short-term range in the negative zone. And this is consolidation before the next decline.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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