News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here -
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here:
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here:
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here:
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here:
EURUSD Rate Risks Larger Recovery on Wait-and-See ECB Policy

EURUSD Rate Risks Larger Recovery on Wait-and-See ECB Policy

2019-04-10 18:25:00
David Song, Strategist

EUR/USD extends the rebound from earlier this month as the European Central Bank (ECB) sticks to the sidelines, and the exchange rate may stage a larger correction over the coming days amid the failed attempt to test the 2019-low (1.1176).

The ECB appears to be in no rush to alter the forward-guidance as the central bank pledges to keep euro-area interest rates ‘at their present levels at least through the end of 2019,’ and it seems as though the Governing Council will keep monetary policy on auto-pilot ahead of the second-half of the year as President Mario Draghi’s term is set to expire at the end of October.

Image of ecb interest rates

It remains to be seen if the ECB will attempt to buy more time at the next quarterly meeting on June 6 as the current ‘measures, including the new series of TLTROs that we announced in March, will help to safeguard favourable bank lending conditions and will continue to support access to financing, in particular for small and medium-sized enterprises,’ but the ECB may have little choice but to further support the monetary union as ‘the information that has become available since the last Governing Council meeting in early March confirms slower growth momentum extending into the current year.’

Until then, the wait-and-see approach for monetary policy may keep EUR/USD afloat as the ECB insists that ‘underlying inflation is expected to increase over the medium term,’ with the euro-dollar exchange rate at risk of staging a larger recovery in light of the failed attempt to test the 2019-low (1.1176).

Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

EUR/USD Rate Daily Chart

Image of eurusd daily chart

Keep in mind, the broader outlook for EUR/USD remains clouded with mixed signals as the exchange rate appears to be stuck in a wedge/triangle formation, but the lack of momentum to test the 2019-low (1.1176) paired with the failed attempt to close below the Fibonacci overlap around 1.1190 (38.2% retracement) to 1.1220 (78.6% retracement) raises the risk for a larger correction.

Need a break/close back above the 1.1270 (50% expansion) to 1.1290 (61.8% expansion) region to open up the 1.1340 (38.2% expansion) hurdle, with the next area of interest coming in around 1.1390 (61.8% retracement) to 1.1400 (50% expansion).

For more in-depth analysis, check out the 2Q 2019 Forecast for the Euro

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.