- DXY rebound falters in Asia.
- German politics, ECB jawboning to keep upside limited.
- Eyes US macro news for fresh incentives.
The EUR/USD pair staged a solid comeback in Asia, having reversed from four-day lows of 1.2165. However, sellers continued to lurk just ahead of the 1.22 handle, leaving the rates in a consolidative phase below the last.
The spot is seen trying hard to retain the bids over the last hours, as upbeat US data-led rebound in the US dollar from multi-year lows versus its main peers loses steam. Expectations of higher global interest rates, as most major central banks are likely to join the Fed in normalizing their monetary policy this, continues to dampen the sentiment around the greenback
On Wednesday, the main currency pair corrected sharply from its best levels since Dec 2014 at 1.2323, after markets used the excuse of the ECB officials’ jawboning the currency to book profits on their EUR longs, as attention now turns towards the ECB monetary policy decision due next week.
ECB’s Nowotny: Euro exchange rate must be observed
ECB’s Constancio: Worried about Euro moves that don't reflect fundamentals
Meanwhile, the major showed limited reaction to the Eurozone final CPI numbers, which confirmed the flash estimate of 1.4% on an annualized basis. In the day ahead, markets eagerly await a fresh batch of macro news from the US docket for fresh impetus, as the EUR calendar remains data-dry. However, the speech by the German Bundesbank President Weidmann will be eyed in the European session.
EUR/USD Technical Levels
FXStreet’s Chief Analyst, Valeria Bednarik, writes: “The 4 hours chart present some minor divergences, as the price is recovering after struggling around a bullish 20 SMA, but the Momentum indicator keeps heading lower around its 100 level, mostly due to the price being below its previous highs. Any possible upcoming decline should be considered corrective after the pair added roughly 400 pips pretty much straight, yet renewed buying interest above 1.2280 is now required to revert the short-term negative tone and consider higher highs ahead. Support levels: 1.2190 1.2155 1.2110. Resistance levels: 1.2280 1.2320 1.2350.”
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 looks sidelined above 1.1300 ahead of Fedspeak
EUR/USD keeps its marked advance in place above the 1.1300 barrier on Wednesday, buoyed by continued selling pressure on the US Dollar. Lingering trade tensions and fresh worries over US fiscal stability weigh further on the Greenback, while markets turn their focus to upcoming central bank remarks.
GBP/USD keeps the bid stance above 1.3400 on USD-selling
GBP/USD pulls back from the multi-year high near 1.3470 reached earlier in the day but manages well to maintain its bullish bias so far on Wednesday. Latest UK data showed annual CPI inflation surged to 3.5% in April from 2.6% in March, giving the British Pound extra wings.
Gold extends its recovery past $3,300 on US politics... and geopolitics
Gold manages to reclaims the $3,300 mark per troy ounce on Wednesday, driven by mounting fears that Middle East tensions could escalate further Also collaborating with the rebound in the precious metal, the US Dollar remains on the back foot amid persistent debt concerns.
The Fed won’t cut rates soon – bad news for your mortgage loan Premium
The recent surge in US Treasury bond yields after Moody’s cut the credit rating of the United States (US) sovereign debt could be a wake-up call for financial markets, the kind of canary in the coal mine that ends up being remembered as a turnaround signal.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.