- Outlook EUR / USD becomes neutral as an ECB signals cautious way.
- The US dollar remains under pressure because trade tariffs are still worried.
- The couple recovered, but technical resistance to 1,1340 stores mild pressure.
The appearance of EUR / USD remains neutral because the price is caught between the ECB’s Dovies and the growing volatility in American economic policy. The euro is slightly obtained, will be used by a potential ECB cut in the June meeting. The rate is expected to fall to 2%. However, the ECB Fabio Panetta member stated that they will further reduce the rate of rates on the need, acknowledging the weakening of the economy.
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Panetta also indicated that the growth of the eurozone was weak and trade relationship with the United States can significantly affect economic growth. Uncertainty aligns with weaker German data on retail. Although the annual growth of retail is beaten by expectations, economic care still existed. German inflation data have met the expectations at 0.1%, no bull room are borrowed.
Meanwhile, the US dollar remains bribed for political instability. Re-installing Trump tariffs was suspended earlier, it renewed global trade tension. Moreover, the ballooning of the fiscal deficit and the Trump tax account continues to hold pressure on Greenback.
These factors associated with a weaker American K1 GDP and mild UPTICK in weekly unemployment data have further worsened Outlook. The American core of the PCE, preferred inflation meter on Fed, came to 0.1% of the meeting expectations. The initial reaction of the market remained favorable for EUR / USD.
EUR / USD Technical Outlook: Careful Bullness above 1.13
EUR / USD 4-hour graph shows a powerful jump of 1,1200 support, forming the bottom. Despite the treasure withdrawal from yesterday’s top, the price remains about 1,135, holding most of the gains.
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Immediate resistance occurs at 1,135 per night 1,1400. The permanent break above 1,1400 can open the door to 1,1450 and 1,1500. One side of turning, 1,1300 remains strong support before 1,1250. The RSI remains about 50 years, supporting a careful bullal tone.
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