EUR/USD awaits ECB to break monotony around 1.1800


  • EUR/USD aims for intraday high inside immediate trading range.
  • Market sentiment dwindles on light calendar, off in Japan.
  • US President Biden hopes infrastructure spending passage even as Senators rejected opening debate, covid woes escalate.
  • No change in ECB monetary policy is expected but statement, President Lagarde’s press conference will be the key.

EUR/USD aptly portrays the pre-ECB trading lull, marking a 15-pip trading range around 1.1800, heading into Wednesday’s European session. That said, the major currency pair recently picks up bids to the range’s resistance amid the US dollar pullback.

In addition to the market’s cautious sentiment ahead of the European Central Bank (ECB) monetary policy meeting, off in Japan and a light calendar in Asia also contributes to the sluggish momentum. Even so, the quote keeps the previous day’s bounce off early-April lows.

It should, however, be noted that the coronavirus woes and lack of clarity over US President Joe Biden’s infrastructure spending plan, as well as the US budget, keep the pair sellers hopeful. On the contrary, mildly bid stock futures, tracking Wall Street gains, favor the EUR/USD buyers.

Talking about the fears over the Delta covid variant, Australia registers the highest infections in 10 months whereas the UK reported a slightly higher daily count, 44,104 versus 42,302 the previous Wednesday, as well as a 50% weekly jump in the death toll to 73.

On the other hand, US President Joe Biden expects the infrastructure deal although the Senators voted against the opening debate the pushed back the negotiations to next week. Furthermore, US-China tussles escalate as US Trade Representative Katherine Tai backs Australia in its trade dispute with China. Also on the same line could be China National Security Law action in Hong Kong and five arrests.

It’s worth mentioning that the ECB is widely expected to keep its policy status-quo after showing readiness to accept a bit higher inflation than the 2.0% target during the last meeting. However, the Monetary Policy Statement and Press Conference of President Christine Lagarde will be the key as markets brace for a dovish considering the latest virus resurgence. If matched, the EUR/USD bears will jump back to the table and can cheer the death cross to aim for the yearly low.

Read: ECB Preview: Three reasons why Lagarde could hit the euro when it is down

Technical analysis

EUR/USD teases a death cross on the daily chart, a pattern wherein the 50-DMA drops below the 200-DMA and signals further downside. However, an ascending support line from November, around 1.1775 becomes a trigger for fresh fall.

Read: EUR/USD Price Analysis: Impending death cross teases bears around 1.1800 on ECB day 

Additional important levels

Overview
Today last price 1.1796
Today Daily Change 0.0002
Today Daily Change % 0.02%
Today daily open 1.1794
 
Trends
Daily SMA20 1.1847
Daily SMA50 1.2013
Daily SMA100 1.1982
Daily SMA200 1.2006
 
Levels
Previous Daily High 1.1805
Previous Daily Low 1.1752
Previous Weekly High 1.188
Previous Weekly Low 1.1772
Previous Monthly High 1.2254
Previous Monthly Low 1.1845
Daily Fibonacci 38.2% 1.1784
Daily Fibonacci 61.8% 1.1772
Daily Pivot Point S1 1.1762
Daily Pivot Point S2 1.1731
Daily Pivot Point S3 1.1709
Daily Pivot Point R1 1.1815
Daily Pivot Point R2 1.1836
Daily Pivot Point R3 1.1868

 

 

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 News


Latest Forex News

Editors’ Picks

EUR/USD refreshes daily high above 1.1850 ahead of EU data

EUR/USD is trading above 1.1850, as it continues to notch higher on Thursday. Dovish Fed downs the US Treasury yields alongside the US dollar. Rebound in Chinese stocks lifts overall market mood, weighing further on the safe-haven dollar. Eurozone data and US GDP in focus.

EUR/USD News

GBP/USD renews monthly top above 1.3900 on softer USD, Brexit optimism

GBP/USD picks up bids to refresh multi-day high above 1.3900. US dollar tracks Treasury yields to the south amid Fed’s dovish tilt. EU softens legal threat over NI protocol on demand of UK’s Frost. UK scraps quarantine rules for fully vaccinated EU, US travelers.

GBP/USD News

EUR/USD refreshes daily high above 1.1850 ahead of EU data

EUR/USD is trading above 1.1850, as it continues to notch higher on Thursday. Dovish Fed downs the US Treasury yields alongside the US dollar. Rebound in Chinese stocks lifts overall market mood, weighing further on the safe-haven dollar. Eurozone data and US GDP in focus.

EUR/USD News

Dogecoin price action raises more questions than answers, while DOGE threatens a decline

Dogecoin price rebound remains unvalidated as the cryptocurrency fails to register one close above the midline of an ascending parallel channel since the July 21 breakout. Without greater conviction, DOGE is not positioned for notably higher prices.

Read more

FOMC : The statement giveth and Powell taketh away

For a moment after the FOMC statement it seemed that clarity of the hazy central bank variety had surfaced at the Federal Reserve. This sentence was added to the policy announcement, " Since then, the economy has ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures