• EUR/USD struggled to gain any meaningful traction and was pressured by a modest USD strength.
  • The ECB-Fed policy divergence was seen as another factor that acted as a headwind for the major.
  • The downside seems limited as traders seemed reluctant ahead of the key central bank event risks.

The EUR/USD pair remained on the defensive through the early European session and was last seen trading around the 1.1275-70 region, just a few pips above the overnight swing low.

The US dollar stood tall near a one-week high amid firming expectations that the Fed would tighten its monetary policy sooner rather than later to contain stubbornly high inflation. Apart from this, fresh concerns about the economic risks emerging from the spread of the Omicron variant of the coronavirus further benefitted the greenback's safe-haven status.

Conversely, a more dovish stance adopted by the European Central Bank (ECB) undermined the shared currency and exerted some pressure on the EUR/USD pair. In fact, the ECB policymakers have talked down the need for any action to counter inflation. The divergence in monetary policy outlooks between the Fed and the ECB acted as a headwind for the EUR/USD pair.

The downside, however, remains cushioned, at least for the time being, as investors preferred to wait on the sidelines ahead of the key central bank event risks. The Fed will announce its monetary policy decision on Wednesday and the ECB meeting is scheduled on Thursday. The outcome will determine the next leg of a directional move for the EUR/USD pair.

In the meantime, traders might take cues from the release of the Eurozone Industrial Production data, which will be followed by the US Producer Price Index later during the early North American session. Apart from this, the broader market risk sentiment will influence the USD price dynamics and produce some trading opportunities around the EUR/USD pair.

Technical levels to watch

EUR/USD

Overview
Today last price 1.1275
Today Daily Change -0.0009
Today Daily Change % -0.08
Today daily open 1.1284
 
Trends
Daily SMA20 1.1293
Daily SMA50 1.1461
Daily SMA100 1.1614
Daily SMA200 1.1795
 
Levels
Previous Daily High 1.1319
Previous Daily Low 1.126
Previous Weekly High 1.1355
Previous Weekly Low 1.1228
Previous Monthly High 1.1616
Previous Monthly Low 1.1186
Daily Fibonacci 38.2% 1.1283
Daily Fibonacci 61.8% 1.1297
Daily Pivot Point S1 1.1256
Daily Pivot Point S2 1.1229
Daily Pivot Point S3 1.1197
Daily Pivot Point R1 1.1316
Daily Pivot Point R2 1.1347
Daily Pivot Point R3 1.1375

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls below 0.9850 as dollar gathers strength

EUR/USD falls below 0.9850 as dollar gathers strength

EUR/USD came under renewed bearish pressure and declined to fresh daily lows below 0.9850 in the American session on Thursday. Hawkish comments from Fed's Kashkari on the policy outlook seem to be providing a boost to the greenback and weighing on the pair.

EUR/USD News

GBP/USD extends daily slide, trades below 1.1200

GBP/USD extends daily slide, trades below 1.1200

GBP/USD continues to push lower in the second half of the day and trades below 1.1200. The renewed dollar strength on hawkish Fed commentary and rising US yields forces the pair to stay under bearish pressure as markets start to prepare for Friday's jobs report.

GBP/USD News

Gold struggling to retain its bullish strength

Gold struggling to retain its bullish strength

XAUUSD shed some ground on Thursday, currently hovering around $1,713.00. The dollar has gathered momentum as Wall Street opened in the red, holding into negative territory at the time. Also, government bond yields resumed their advances and hold near fresh weekly highs.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.

Read more

TSLA suffers again as Elon Musk moves ahead on Twitter deal

TSLA suffers again as Elon Musk moves ahead on Twitter deal

The will, he won't he debate surrounding Tesla (TSLA) CEO Elon Musk and his bid for Twitter continues to rumble. Twitter (TWTR) stock initially soared on Tuesday as reports broke that the deal looked like it was on.

Read more

Forex MAJORS

Cryptocurrencies

Signatures