Crypto & Forex April 29, 2026 0 Comments

EUR/USD Set to Explode or Implode? The Fed’s Move Could Flip the Game Completely — Here’s What You Need to Know Now.

Ever wondered why the EUR/USD pair seems to be playing the ultimate game of “freeze tag” around 1.1700? It’s almost like the market’s caught in a holding pattern, patiently waiting for the Federal Reserve and European Central Bank to spill the beans on what’s next. Both central banks are expected to keep interest rates steady, but with energy prices skyrocketing thanks to the prolonged Strait of Hormuz closure, the inflation story is anything but dull. Now, all eyes are glued to Jerome Powell and Christine Lagarde—will their words nudge us toward tighter monetary policy or keep the current status quo? Throw in the preliminary German inflation data expected to hit 3% YoY, and you’ve got a recipe for some serious anticipation. So, what’s a trader to do amidst this tug-of-war? Let’s dive into the chatter, the charts, and what it all might mean for the EUR/USD. LEARN MORE.

The EUR/USD pair consolidates around 1.1700, inside Tuesday’s trading range, during the Asian trading session on Wednesday. The major currency pair has remained broadly sideways, with investors awaiting monetary policy announcements by the Federal Reserve (Fed) and the European Central Bank (ECB) on Wednesday and Thursday, respectively.

Both the Fed and the ECB are expected to leave interest rates unchanged at their current levels, and warn of upside inflation risks amid elevated energy prices due to the prolonged closure of the Strait of Hormuz.

Investors will pay close attention to commentaries from Fed Chair Jerome Powell and ECB President Christine Lagarde to get cues about whether their respective central banks are discussing the need to tighten monetary conditions in the near term.

Ahead of the Fed-ECB policy announcement, investors will focus on the preliminary German Harmonized Index of Consumer Prices (HICP) data for April, which will be published at 12:00 GMT. The data is expected to show that the German inflation accelerated to 3% Year-on-Year (YoY) from 2.7% in March.

EUR/USD technical analysis

EUR/USD trades flat at around 1.1700 as of writing. The pair reflects a sideways trend as it remains sticky to the 20-day exponential moving average (EMA), which is at 1.1698, but stays above the 38.2% Fibonacci retracement at 1.1666.

The Relative Strength Index (RSI) shifts into the 40.00-60.00 zone after failing to sustain above 60.00 for longer, which indicates loss of upside momentum, but the upside bias remains intact.

On the topside, immediate resistance emerges at the 50.0% Fibonacci retracement near 1.1745, followed by the 61.8% retracement around 1.1825, with further hurdles at 1.1938 and the cycle high near 1.2082. Looking down, the 38.2% retracement at 1.1666 is the initial support; a break below that area would expose deeper supports at the 23.6% level near 1.1567 and the structural floor around 1.1408.

(The technical analysis of this story was written with the help of an AI tool.)

Economic Indicator

Harmonized Index of Consumer Prices (YoY)

The Harmonized Index of Consumer Prices (HICP), released by the German statistics office Destatis on a monthly basis, is an index of inflation based on a statistical methodology that has been harmonized across all European Union (EU) member states to facilitate comparisons. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is bullish for the Euro (EUR), while a low reading is bearish.