- EUR / USD Outlook shows the bear shift in feeling.
- The euro pulled back with six weeks high that focus switched to the probable ECB cut.
- US ISM Production PMI discovered a weaker business activity than expected.
Outlook EUR / USD shows a bear shift in feelings as traders focus on the upcoming meeting of the European Central Bank. However, the weakness of dollars continued as market participants were concerned about the state of the American economy after Trump tariffs.
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The euro pulled back with six weekly high hits on previous session such as focus transferred to probably cut ECB rate. The market participants almost completely prices on Thursday. It is known that inflation in the eurozone declined significantly, approaching the goal of 2% of the Central Bank. At the same time, forecasts for global growth fell since Trump began his heading campaign. This is more pressure on the main central banks at lower borrowing costs.
In addition, market participants will focus on the message during the meeting. If policy makers signal more reduction in the future, the euro could fall. However, if they remain ambiguous, the currency can continue their sample.
In recent days, the euro acquired while the dollar was alleviated by trade tensions. Trump is set to apply 50% tariffs on aluminum and steel on Wednesday, which will retain the risk of living trading wars. As a result, the demand for the dollar fell.
Meanwhile, ISM Production of PMI has discovered a weaker business activity than expected in the United States. The index fell to 48.5, significantly below the forecast 49.3. He raised concern about the economy’s condition after Trump Tariff.
EUR / USD Key events Today
- The struggle of GOV UEDA is talking
- US Jolts open for work
EUR / USD Technical Outlook: Rally Pauses to Replace 1.1401
On the technical side, EUR / USD price is retired after it has made a new high utreuende. The bulls recently broken above the level of resilience at 1,1401, strengthening the bicary bias. After a break, the price is retreated to be re-set to this level.
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Moreover, the price trades above the 30ths with RSI in real estate over 50. Therefore there is a great chance that the posttrand will continue after a short break. If the 1.1401 level holds the company as support, the price will bounce more. The next goal is at 1,1500 key psychological level.
However, the price can be broken below the level. However, the bears will face support of 30 SMA and Bilks.
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