The EUR/USD pair staged a minor comeback from near 1.1825 region in Asia, as the bulls found some support from the latest chatter over the ECB QE taper.
The spot is seen printing daily highs near the midpoint of 1.18 handle, as the sentiment around Euro received a fresh boost from the Bloomberg headlines, quoting the officials familiar with the debate that the ECB is said to be considering cutting QE to 30bn a month from January 2018.
The ECB QE taper talks offer fresh impetus to the EUR bulls, as the ECB Chief Draghi’s speech turned out to be dovish, which intensified the retreat in the EUR/USD pair from two-week highs of 1.1880 levels. ECB's Draghi: ECB pledge to keep rates low "well past" QE is key - Reuters
Focus now remains on the interest rates differential between both continents, as investors gear up for the highly anticipated US CPI data due on the cards later today. The US inflation data holds the key on the future rate hike prospects, after the Sept FOMC meeting showed that the Fed members remain concerned over the inflation outlook. FOMC Minutes: Many Fed officials saw another rate hike warranted this year
Meanwhile, markets will pay close attention to the updates on the ongoing political tensions in Spain for further direction on the Euro.
EUR/USD Technical View
Valeria Bednarik, Chief Analyst at FXStreet wrote: “The 4 hours chart shows that technical indicators keep retreating from overbought levels, still in positive territory, while a bullish 20 SMA extends above the 100 SMA below the current level, a sign that the ongoing decline could be just corrective. The 38.2% retracement of the mentioned rally comes at 1.1795, the level to break to confirm additional declines ahead. Support levels: 1.1825 1.1795 1.1760 Resistance levels: 1.1890 1.1930 1.1965.”
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 extends losses on dovish remarks from ECB members, trades near 1.0780
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD trades sideways above 1.2600 amid quiet session
The GBP/USD pair trades sideways around 1.2622 during the early Friday. The market is likely to be mute in light trading on Good Friday. Later in the day, the US Core Personal Consumption Expenditures Price Index will be released.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.