Superior broker technology provider since 2010
+1 (315) 675 1086 |

EUR/USD Technical Analysis: Strong Bearish Tendency

  • Since the start of this week’s trading, the price of the EUR/USD currency pair has been moving in very narrow ranges, with a strong bearish tendency.
  • This is affecting the support level 1.0668, before settling around 1.0711 at the time of writing the analysis.
  • The recent US job numbers were highly motivating for the US dollar against other major currencies.
  • The dollar may remain in its position until the reaction to US inflation numbers next week, which will determine the fate of the next US interest rate decision.

The European Central Bank is not done with increasing borrowing costs as core inflation has proven stubborn, said ECB Executive Council member Isabel Schnabel. “We have more ground to cover,” she was quoted as saying. “It will depend on the data coming in by how much the rates increase.” Speaking a week before European Central Bank officials meet in Frankfurt to outline their next move, Schnabel highlighted that core inflation – which excludes volatile items such as food and energy – “is more stable and remains high, with services playing a key role due to the strong influence of wage costs on inflation.” in these sectors.”

The ECB has already raised interest rates by 375 basis points since July, and officials are expected to make two more quarter-point hikes this month and next. Some policymakers also suggest that further action may be needed in September. “The peak of core inflation will not be enough to declare victory: we need to see convincing evidence that inflation is returning to our 2% target in a timely and sustainable way,” she added. “We are not there yet.”

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker

German industrial production grew at a slower-than-expected pace in April, raising the odds of another economic contraction in the second quarter. Data from German statistics agency Destatis on Wednesday showed that German industrial output rose 0.3 percent month on month, reversing a 2.1 percent drop in March. The growth rate was well below the expected 0.6%. On a yearly basis, German industrial production rose just 1.6 percent, slower than the 2.3 percent rise a month earlier.

There is no change in my technical view of the performance of the EUR/USD currency pair, as the trend is still bearish. Stability below the psychological support 1.0700 will motivate the continuation of the strength of the bears and anticipation to test stronger support levels. The closest to them after that 1.0650 and 1.0590, respectively, which is sufficient to push the technical indicators towards strong oversold levels.

On the other hand, according to the performance on the daily chart below, the bulls will not control the direction of the EUR/USD pair without moving towards the resistance levels 1.0880 and 1.1000, respectively. Today, the currency pair will be affected by the announcement of the economic growth reading for the Eurozone, and then the announcement of the number of jobless claims in the US.

Ready to trade our daily Forex analysis? We’ve made a list of the best forex trading accounts worth trading with.


Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.