EUR/USD Current Price: 1.1790

  • ECB left its monetary policy unchanged as expected, explained forward guidance.
  • US data missed expectations, Initial Jobless Claim surged to 419K.
  • EUR/USD retains the neutral-to-bearish stance in the near-term.

The EUR/USD pair is down on a daily basis, despite a better market’s mood. The shared currency took note of the European Central Bank’s dovish stance. As widely anticipated, the ECB decided to leave the interest rates on the main refinancing operations, the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively. Policymakers reaffirmed that the PEPP would continue to run significantly faster than at the beginning of the year.

On the so-long awaited new forward guidance, the Government Council noted that interest rates will remain at present or lower levels “until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realised progress in underlying inflation is sufficiently advanced.”

Meanwhile, the US published Initial Jobless Claims for the week ended July 16, which increased to 419K, missing the market’s expectations. The Chicago Fed National Activity Index printed at 0.09 in June, down from the previous 0.26. The country will publish Existing Home Sales for June later in the day.

EUR/USD short-term technical outlook

The EUR/USD pair peaked at 1.1813 right after the announcement and later fell to 1.1770. As President Christine Lagarde speaks, the pair seesaws between such a range, unable to firm up above 1.1800. The 4-hour chart shows that the pair keeps developing inside a descendant channel,  offering a neutral-to-bearish stance. The pair is stuck around a mildly bearish 20 SMA while technical indicators hover around their midlines. Further declines are likely on a break below the weekly low at 1.1751.

Support levels: 1.1750 1.1720 1.1685

Resistance levels: 1.1840 1.1885 1.1920

View Live Chart for the EUR/USD

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.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Majors

Cryptocurrencies

Signatures