- EUR / USD Outlook is under pressure near 1.1340 in the middle of Dovish ECB and softer EU data.
- Staffing US dollars for a stronger sense of risk and Hawk’s feeding comment, helping CAP EUR / USD upside down.
- All eyes to this week’s data on American and eurozone, including permanent goods, reliability indices and policy guidelines ECB / FED.
Outlook EUR / USD became negative on Tuesday, because the basic factors favor the American dollar. The couple traded 1,1335, at the time of writing, from almost 0.40%. Forms of areas of central banks and softer data on the eurozone weighed on euros.
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The latest ECB official comments reinforced the need to reduce the rates in the June meeting. According to the ECB Council, Gediminas Simkus, “the risk that inflation will be below the goal in the future, it increases.” He also added that borrowing costs are high, near neutral scope and euro is strong. Its willingness to continue to facilitate weight policies on a common currency. The State Member Francois Villeroi also echoed the same wind tone and admitted that the normalization of the ECB policy is not yet complete. A softer French inflation can accelerate the attitudative attitude.
The shift is critical because the divergence between ECB and FED can increase. While the ECB is close to another cut, the Fed continued to be reluctantly. The president of Feda Kaquerski strengthened the view of support for restrictive politics and skeptical inflation transmission due to tariffs.
Meanwhile, German data failed to impress customers. The Consumer Consumer Consumer Index for June has increased only -19.9, missing expectations and detecting a weaker feeling in the household. In combination with softer French inflation, the euro weakened.
On the other hand, the American dollar benefits from crossing to market sentiment. DXI climbed back above area 99.50, recovering earlier losses. Investors began prices in the delayed rate, which was Fed Fed, while ECB’s climpiness also gives the edge of the dollar.
Key events for EUR / USD today
- Orders for Permanent Goods US (April)
- CB consumer confidence (May)
EUR / USD Technical Outlook: Deciding Trendline Support
The 4-hour graph shows a pair approaching trendline supports. The couple is well above the 20-periods that can support the price of sudden falling. However, the maintenance below 1,1335 can initiate sales according to 1,1260.
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On the flip side, if it has the support of trendline, the price can move back to 1,1400 lunch at 1,1573, multi-seat per month highly formed in April. However, the RSI turns lower, but above 50.0 levels. Proposes potential consolidation before a crucial move.
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