EUR/USD Current price: 1.0881
- The European Central Bank trimmed the main three interest rates by 25 bps each.
- The United States reported unemployment claims rose in the last week of May.
- EUR/USD keeps trading within familiar levels and lacks directional strength.
The EUR/USD pair traded with a soft tone, yet within familiar levels throughout the first half of Thursday, as market players awaited the European Central Bank (ECB) monetary policy announcement, and minor United States (US) employment data ahead of the release of the Nonfarm Payrolls (NFP) report on Friday.
The ECB delivered as expected and trimmed the three main rates by 25 basis points (bps) each, with the interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility coming down to 4.25%, 4.5% and 3.75%, respectively. The accompanying statement was mainly hawkish, as policymakers announced they would prefer to keep policy rates sufficiently restrictive for as long as necessary and that they would continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of the restriction.
The announcement had a limited impact on EUR/USD, which ticked marginally higher. The pair further advanced with the release of US Weekly Unemployment Claims, which rose more than anticipated in the week ended May 31 to 229K vs. the expected 220K. EUR/USD, however, was unable to conquer the 1.0900 threshold.
Ahead of Wall Street’s opening, stock markets trade marginally higher. ECB President Christine Lagarde kicked off the press conference, which may introduce additional noise to markets.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair has shown little progress. It trimmed most of the initial gains and trades in the 1.0870 price zone. The daily chart offers a neutral-to-bullish stance as EUR/USD develops above all its moving averages, with the 20 Simple Moving Average (SMA) advancing above the longer ones. Technical indicators, in the meantime, remain directionless, although the Relative Strength Index (RSI) indicator aims marginally higher at around 58, skewing the risk marginally to the upside.
In the near term, and according to the 4-hour chart, EUR/USD is battling to overcome a mildly bullish 20 SMA while holding above bullish 100 and 200 SMA. Technical indicators, however, failed to provide directional clues. The Momentum indicator lost directional strength within negative levels, while the RSI indicator heads nowhere within neutral levels. A clear break through 1.0910 could anticipate a near-term bullish extension, while bears can take control if the pair breaks through the 1.0820 support level.
Support levels: 1.0850 1.0820 1.0780
Resistance levels: 1.0910 1.0960 1.1000
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
AUD/USD: No respite to the selling pressure
AUD/USD remained well on the defensive, trading in a volatile fashion that saw spot surpass the 0.6100 hurdle just to fade that uptick afterwards and revisit the 0.5980 towards the end of the NA session.
EUR/USD: Tariffs keep the sentiment subdued
EUR/USD added to Friday’s pullback and revisited the sub-1.0900 area, or two-day lows on the back of further gains in the US Dollar and the widespread demand for the safe-haven universe.
Gold recedes to four-week lows near $2,950
The persistent selling pressure is now dragging Gold prices to the area of fresh multi-week troughs near the $2,950 mark per troy ounce, always amid the continuation of the recovery in the US Dollar, highr US yields across the curve and unabated tariff tensions.
Binance founder CZ becomes strategic advisor to Pakistan's Crypto Council
The Pakistan Crypto Council appointed Binance founder and former CEO Changpeng Zhao (CZ) as a strategic advisor on Monday to provide guidance on crypto infrastructure, education and adoption for the Pakistani government and private companies.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.