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. See our updated Privacy Policy here.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Gold prices failed to retake the uptrend from the May 2019, March 2020, and March 2021 lows, and are nearing their monthly low. Get your $XAUUSD market update from @CVecchioFX here:https://t.co/qkCdUJFtc2 https://t.co/ldbYm2U0vC
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTXcpk https://t.co/NmQzIm39lj
  • Latest update on #Evergrande focusing on the Australian Dollar "Australian Dollar Eyes Evergrande as USD Bondholders Still Await Interest Payments" #AUD $AUDUSD https://www.dailyfx.com/forex/market_alert/2021/09/24/Australian-Dollar-Eyes-Evergrande-as-USD-Bondholders-Still-Await-Interest-Payments.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/AAU8nMn0ou
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/3bjMHrUZRJ
  • 🇹🇭 Balance of Trade (AUG) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cC4v7H https://t.co/uhBNvCTHrW
  • Evergrande USD bondholders say have yet to receive interest due Thursday -BBG
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/J0vSWHaADc
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/nmP0MX8LGM
EURUSD Rate Consolidates Ahead of ECB Amid Failure to Test April-Low

EURUSD Rate Consolidates Ahead of ECB Amid Failure to Test April-Low

David Song, Strategist

EUR/USD Rate Talking Points

EUR/USD fails to test the May-low (1.1107) ahead of the European Central Bank (ECB) meeting on June 6, with the exchange rate snapping the series of lower highs and lows from the previous week.

EURUSD Rate Consolidates Ahead of ECB Amid Failure to Test April-Low

EUR/USD appears to be catching a bid as the ECB is widely expected to retain the current policy, and more of the same from the Governing Council may keep the exchange rate afloat as the central bank remains confident in achieving its one and only mandate for price stability.

In fact, the ECB may largely endorse a wait-and-see approach as President Mario Draghi & Co. prepare to launch another round of Targeted Long-Term Refinance Operations (TLTRO), and EUR/USD may continue to consolidate throughout the first full week of June as the Governing Council appears to be in no rush to alter the forward-guidance for monetary policy.

Image of ECB interest rates

With that, it seems as though the ECB will be on autopilot ahead of President Draghi’s departure at the end of October, but the central bank may come under increased pressure to further insulate the monetary union amid the weakening outlook for the global economy. As a result, the Governing Council may continue to rely on non-standard measures, with the Euro stands at risk of facing a more bearish fate over the coming days if Governing Council shows a greater willingness to implement a negative interest rate policy (NIRP).

Until then, EUR/USD may continue to consolidate amid the failed attempt to test the May-low (1.1107), with recent price action raising the risk for a larger rebound as the exchange rate snaps the series of lower highs and lows from the previous week.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

EUR/USD Rate Daily Chart

Image of EURUSD daily chart
  • Keep in mind, the broader outlook for EUR/USD remains tilted to the downside as both price and the Relative Strength Index (RSI) continue to track the bearish formations from earlier this year, with the near-term outlook mired by the failed attempt to push back above the Fibonacci overlap around 1.1270 (50% expansion) to 1.1290 (61.8% expansion).
  • With that said, the 1.1100 (78.6% expansion) handle remains on the radar, but lack of momentum to test the May-low (1.1107) raises the risk for range-bound conditions.
  • Next downside area of interest comes in around 1.1040 (61.8% expansion) followed by the Fibonacci overlap around 1.0950 (100% expansion) to 1.0980 (78.6% retracement).

For more in-depth analysis, check out the 2Q 2019 Forecast for 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 markets the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019.

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES