|

EUR/USD Price Forecast: Euro wavers around 1.1430 with the bearish trend intact

  • EUR/USD edges up to levels near 1.1440 but remains trapped within previous ranges
  • Bright German Trade Balance figures have provided minor support to the Euro.
  • Recent price action hints at a potential bearish flag formation.

The Euro (EUR) posts moderate gains against the US Dollar (USD) on Thursday, hitting session highs near 1.1440, yet trapped within the weekly range, with the broader bearish trend in play. A softer US Dollar is providing some support to the Euro, but rising geopolitical tensions and the rebound in Oil prices keep weighing on the common currency.

Data from Germany released earlier on Thursday revealed that the Trade Balance surplus increased beyond expectations in May, totalling EUR 19.1 billion, from the 14.5 billion surplus seen in April, with exports growing and imports contracting against expectations. The Euro received a minor boost after the data release.

The US Dollar, on the other hand, is losing ground, with markets still hopeful that Washington and Tehran will return to the negotiating table, despite the escalating tensions. News that Qatar is pressing Iran to implement the MoU agreement and contain the escalation feeds hopes of a negotiated end to the war and is keeping the Euro from dropping further.

Technical Analysis: Potential bearish flag formation

Chart Analysis EUR/USD

EUR/USD trades at 1.1435, holding within an upward channel, yet with momentum indicators reflecting a lack of a clear bias. The four-hour Relative Strength Index (14) keeps wavering around the 50 midline, with the Moving Average Convergence Divergence (MACD) flat near zero, altogether hinting at a hesitant market.

Bulls would need to break the top of the last few weeks' trading range, at the 1.1480 area and preferably the channel top, now around 1.1500, to ease bearish pressure and shift the focus towards the mid-June highs near 1.1620.

A break below Wednesday's lows, at the 1.1390 area, would highlight a bearish flag formation that would be confirmed below the June 24 low in the 1.1330 area. The flag's measured target is a few pips below the late May 2025 lows, at 1.1210.

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

The story was corrected on July 9 at 08:22 GMT to change the title to EUR/USD Price forecast from the previously written EUR/GBP.)

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.16%-0.21%-0.16%0.03%-0.14%-0.63%-0.28%
EUR0.16%-0.05%-0.02%0.18%0.06%-0.43%-0.11%
GBP0.21%0.05%0.02%0.24%0.10%-0.39%-0.05%
JPY0.16%0.02%-0.02%0.18%0.06%-0.46%-0.11%
CAD-0.03%-0.18%-0.24%-0.18%-0.14%-0.63%-0.30%
AUD0.14%-0.06%-0.10%-0.06%0.14%-0.48%-0.13%
NZD0.63%0.43%0.39%0.46%0.63%0.48%0.34%
CHF0.28%0.11%0.05%0.11%0.30%0.13%-0.34%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

More from Guillermo Alcala
Share:

Editor's Picks

AUD/USD remains depressed 0.7000, awaits FOMC Minutes

AUD/USD struggles to capitalize on its recent recovery move and trades with a negative bias below 0.7000 in Wednesday's Asian session. Amid geopolitical uncertainty, the US Dollar attracts some dip-buyers after a fresh leg up in US bond yields, keeping the pair under pressure despite hawkish RBA expectations. All eyes now remain on the FOMC Minutes.

USD/JPY holds firm near 158.50 ahead of Fed Minutes

USD/JPY hangs close to a one-and-a-half-week high near 158.50 in the Asian session on Wednesday, with bulls now awaiting a move beyond the 200-day SMA hurdle before positioning for further gains ahead of the FOMC Minutes. Meanwhile, a fresh leg up in US bond yields revives US Dollar demand amid geopolitical uncertainties, boosting the pair amid dovish BoJ commentary.

Gold falls as US Dollar, Treasury yields rebound ahead of Fed Minutes

Gold falls nearly 1.20% as the US Dollar and US Treasury yields resume their advance. Traders await the FOMC Minutes for fresh clues on the likelihood of another rate hike before year-end.

Crypto Today: Bitcoin, Ethereum and XRP fall liquidating $550M

Bitcoin’s correction follows a recent rejection due to supply around $87,200. Altcoins are generally in a correction trend, as Ethereum edges lower toward the next key support at $2,600 and Ripple extends its down leg near the $1.45 demand area.

Risk sentiment sours, as UK employment picture darkens

Risk sentiment is deteriorating further as we move through Wednesday. The price of Brent crude oil is now above $102 per barrel, the sell off in European stock indices is deepening, and the gold price is lower by more than 1%.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.