- Outlook EUR / USD shows caution in front of the probability of the central central bank.
- The American private sector added 37,000 jobs, considerably below the forecast.
- Business activity in the American services sector contracted.
Outlook EUR / USD shows caution in front of the probability of the central central bank. Despite the decline, the euro pulled back on Thursday while traders waited for the ECB meeting. However, American data in the previous session was weakened by a dollar, increasing the euro.
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The European Central Bank was set up to have a policy meeting on Thursday. Participants in the market expect the Central Bank to reduce the interest rate 25-BPS. Chromacon policy makers maintained a brought tone due to the recent inflation drop. At the same time, American tariffs led to a reduction in the reputation in the appearance of global growth.
Moreover, traders will wait for them to see if there is a cut to come more than more departments to come. Such a message would withdraw the euro below.
On the other hand, the dollar remained fragile after the set of American economic data on the previous session. The US Private Sector has now added 37,000 jobs, considerably below forecast 111,000. Meanwhile, business activity in the service sector agreed. The PMI came to 49.9, missing a forecast of 52.0. These reports indicate economic weakness due to Trump tariffs.
EUR / USD Key events Today
- ECB Main Refinancing Rate
- ECB Monetary Policy Statement
- Unemployment Notices USA
- ECB Press Conference
EUR / USD Technical Outlook: Rally Pause Near Key Level 1.1401
On the technical side, EUR / USD price retreated to reset the key level 1,1401. At the same time, the price retired to 30 SMA. However, it trades above SMA with RSI older than 50 years, suggesting bicak bias.
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However, EUR / USD remained attached at the level 1,1401 for a while, chopping through it. This is a sign that the bulls are not ready to make large swings above the level. However, with SMA nearby, a moldable momentum can be sufficiently left to allow the price to be new high. With the right catalyst, the price could be re-set up 1,1500 key psychological level.
However, this break could also be a sign that the bulls reached the border. Therefore, bears could strengthen enough to press the price below SMA, which indicates a change in feeling.
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