The EURUSD pair, currently trading at 1.06420, is now experiencing a period of consolidation with a bearish sentiment after a drop following the European Central Bank’s announcement.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• EUR/USD enters a bearish consolidation phase following the overnight post-ECB slump.

The pair currently trades last at 1.06420.

The previous day high was 1.0752 while the previous day low was 1.0632. The daily 38.2% Fib levels comes at 1.0678, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0706, expected to provide resistance.

The EUR/USD pair oscillates in a range below mid-1.0600s during the Asian session on Friday and consolidates the previous day’s post-ECB slump to a six-month trough.

The European Central Bank (ECB) opted to raise interest rates by 25 bps on Thursday, marking the 10th consecutive hike and taking its main rate to an all-time high level of 4% to counter stubbornly high inflation. The ECB, however, lowered its growth and inflation projections for the next year, bolstering the narrative that further hikes may be off the table for now. This, in turn, is seen as a key factor undermining the shared currency and weighing on the EUR/USD pair.

The US Dollar (USD), on the other hand, stands tall just below its highest level since March 8 touched on Thursday and remains well supported by growing acceptance that the Federal Reserve (Fed) will maintain its hawkish stance. The US CPI report released on Wednesday ensured that the Fed will keep rates steady at its upcoming monetary policy meeting next week. The still-sticky inflation, however, keeps the door open for one more lift-off by the end of this year.

The bets were further lifted by Thursday’s upbeat US macro data, which continues to point to a resilient economy and should allow the Fed to keep interest rates higher for longer. That said, a generally positive risk tone holds back traders from placing aggressive bullish bets around the safe-haven buck and lends some support to the EUR/USD pair. Nevertheless, the fundamental backdrop suggests that the path of least resistance for spot prices remains to the downside.

Hence, any attempted recovery might still be seen as a selling opportunity and remain capped. Traders now look to the Chinese macro data dump, which could influence the broader risk sentiment. Traders will further take cues from ECB President Christine Lagarde’s scheduled speech. Apart from this, the US macro data – the Empire State Manufacturing Index and Prelim Michigan Consumer Sentiment Index – should provide some impetus to the EUR/USD pair on the last day of the week.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0639 at the time of writing. Pair opened at 1.0643 and is trading with a change of -0.04 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0792, 50 SMA 1.0937, 100 SMA @ 1.0898 and 200 SMA @ 1.0828.

The previous day high was 1.0752 while the previous day low was 1.0632. The daily 38.2% Fib levels comes at 1.0678, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0706, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0599, 1.0555, 1.0479
• Pivot resistance is noted at 1.072, 1.0796, 1.084

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...