EUR/USD Current price: 1.1275
- ECB´s Minutes showed policymakers are ready to ease further as appropriate.
- US June inflation resulted upbeat, taking some pressure off the greenback.
- EUR/USD battling with critical Fibonacci resistance, scope to test the 1.1300 level.
The EUR/USD pair has reached 1.1280 overnight, underpinned by dollar’s persistent weakness following Fed’s Chief Powell testimony on monetary policy before a special Congressional commission. The pair consolidated at higher ground for most of the European session, resuming its advance to fresh weekly highs ahead of the release of US data, as speculative interest continues pricing in a steeper easing in the US before year end.
The shared currency remained strong despite the ECB’s Meeting accounts showed that EU policymakers are ready to ease further as appropriate, using all the available tools, including resuming APP and cutting rates. The news didn’t surprise the market as additional easing in the Union has been already priced in. Germany released the final version of June inflation, which came in slightly better than previously estimated, up by 0.3% and by 1.5% when harmonized to the EU.
The USD got some relief following the release of US data, better-than-expected, as June inflation figures were revised higher. Core CPI was up by 2.1% YoY and by 0.3% MoM, partially offsetting the sour sentiment triggered by Powell. Also, weekly unemployment claims decreased to 209K in the week ended July 5, beating the market’s expectation of 223K. Later today, Fed’s head Powell, will once again testify in the Congress before a different commission, but he is not expected to add anything new.
EUR/USD short-term technical outlook
The EUR/USD pair eased just modestly from 1.1285, so far the daily high, as the strong momentum in equities keeps high-yielding currencies on demand. The pair is currently struggling with the 38.2% retracement of its latest downward move, holding below the 100 SMA but finding intraday support around the 200 SMA in the 4 hours chart, and with the 20 SMA gaining strength upward currently at around 1.1230. Technical indicators have lost directional strength, holding near overbought territory, all of which maintains the risk skewed to the upside.
Support levels: 1.1230 1.1195 1.1150
Resistance levels: 1.1300 1.1340 1.1385
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.