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.

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
EUR/USD
Mixed
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/1TOiApxfjp
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: -0.44% Oil - US Crude: -1.23% Silver: -1.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mBBDXIGnyn
  • US is considering curbing special exemptions for Chinese firms, according to Politico
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.06% 🇨🇭CHF: -0.22% 🇨🇦CAD: -0.23% 🇯🇵JPY: -0.29% 🇳🇿NZD: -0.39% 🇦🇺AUD: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rst0kqdDrJ
  • Coming up at half past the hour. Please join me if you can... https://t.co/R2GcBc8KXS
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: -0.79% Wall Street: -1.00% France 40: -1.13% FTSE 100: -1.35% Germany 30: -1.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u3dcuMGQBh
  • Since mid-June USD/CAD has consolidated in a well-defined zone. Will today’s Fed members speeches (14:00- 18:00 and 19:00 UK) push the pair in a clear direction? #USDCAD, #USD, #Fed https://t.co/SxjnwNupP2
  • Join @MartinSEssex 's #webinar at 6:30 AM ET/10:30 AM GMT to learn more about trading #sentiment Register here: https://t.co/XUUPRdY06p https://t.co/KsjQit31hK
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/Qe7aw1a6UU
  • Crude Oil Prices May Turn Lower as Covid-19 Fears Reemerge - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2020/07/07/Crude-Oil-Prices-May-Turn-Lower-as-Covid-19-Fears-Reemerge.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #CrudeOil #oott #COVID19
EURUSD Rate Consolidates Ahead of ECB Amid Failure to Test April-Low

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

2019-06-03 00:30:00
David Song, Strategist
Share:

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

News & Analysis at your fingertips.