EURUSD AUDUSD Market Insight

EUR/USD

IMF officials said if the European Central Bank hopes to bring inflation back to 2% by the end of 2025, it needs to keep borrowing costs at current levels throughout next year, without considering possible unexpected price pressures. ECB policymaker should be open to think about further rate increases if necessary, and they also need to realize that easing policy too early could be a costly mistake.

We can see EUR/USD tried to break 1.0700 but failed. The price is moving under 48 hours moving average and MACD histogram bar and double line is converging below zero axis on H4 chart. Furthermore, investors do not expect the euro zone to raise interest rates again, so the next stage of EUR/USD will test support near 1.0600. The sell limit or selling strategy could be used, stop loss is compulsory.

AUD/USD

If supply and demand imbalances are resolved, Australia underlying inflation rate in the second quarter will be broadly in line with the goal of Reserve Bank of Australia. When the impact of the earlier supply pressure dissipates and the labor market relaxes, inflation is likely to stay within 2%-3% target range. Long-term average inflation, driven by economic weakness and supply issues, suggests the RBA is on the right path.

The AUD/USD tried to break through once again on H4 chart, but the rising momentum is still insufficient. In addition, the MACD histogram bar seems to shrink near zero axis. AUD/USD currently cannot succeed in getting rid of negative status, if the price falls below the previous low spot, the next target would be 0.6250. Therefore, the acceptable option is to set sell limit between 0.6470 to 0.6520.

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