EUR/USD Current Price: 1.1772
- The ECB kept its monetary policy unchanged, presented vague forward guidance.
- EU data was worst than anticipating, spurring demand for safe-haven assets.
- EUR/USD is pressuring weekly lows and poised to extend its slump.
The EUR/USD pair is ending Thursday in the red and at weekly lows, trading at around 1.1770 after a failed attempt to break higher. The European Central Bank announced its decision on monetary policy, and as widely anticipated, it left rates and the facilities programs unchanged. The announcement was disappointing as the so-awaited forward guidance was vague. 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.”
President Christine Lagarde added that the economy is on track for strong growth in Q3 but added that the coronavirus Delta variant could dampen the recovery in services while bottlenecks could affect manufacturing in the short term. 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. Finally, Consumer Confidence in the EU resulted in -4.4 in July, worse than anticipated. On Friday, Markit will publish the preliminary estimates of its July PMIs for the EU and the US.
EUR/USD short-term technical outlook
The EUR/USD pair trades at the lower end of its weekly range, bearish in the near-term. The 4-hour chart shows that the pair aimed to break above the roof of the descendant channel that guides price since June. The pair topped around a mildly bearish 100 SMA, now developing below all of its moving averages. Technical indicators consolidate within negative levels, skewing the risk to the downside without confirming another leg south.
Support levels: 1.1755 1.1720 1.1685
Resistance levels: 1.1840 1.1885 1.1920
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
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.