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
Oil - US Crude
Bullish
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
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • 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: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
Euro Outlook: EUR/USD Faces Downside Risk Ahead of ECB

Euro Outlook: EUR/USD Faces Downside Risk Ahead of ECB

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • EUR/USD consolidates below 1.18 as the daily chart shows little risk to upside moves
  • Thursday’s ECB meeting is not expected to remove doubts over economic recovery struggles

EUR/USD is trading at its lowest level in 15 weeks after a failed attempted rebound in yesterday’s session. The US Dollar has been able to keep its strength despite the turnaround in stocks which is proving to be a significant headwind for the pair going into the ECB rate decision tomorrow afternoon. Expectations are for everything to stay the same but traders will likely be looking out for any commentary from Lagarde about rising prices and the ongoing pandemic situation. The ECB has been one of the most bearish central banks in Europe and it is likely to remain like so for a while so I wouldn’t expect much upside surprise going into tomorrow’s meeting.

Euro Outlook: EUR/USD Faces Downside Risk Ahead of ECB

Source: Refinitiv

Advertisement

EUR/USD Levels

Last week EUR/USD had broken below 1.18 on 4 occasions so I think there was still some market conviction that the pair would attempt to rebound to 1.19 when the pair broke down below 1.18 again on Monday. But a series of lower higher and lows is painting a pretty clear picture that there is little upside risk in the short term, despite bulls trying to take over above 1.1775. If price continues to be skewed to the downside then there is an area of support up ahead (1.1738 – 1.1704) which served to contain the pullback seen back in March, staging then a rebound towards 1.2266, so this area will be key to watch as an indicator of market sentiment towards the pair. A break lower leaves the pair exposed to the 1.17 line, which has held so far since November 2020 after 5 months of range trading.

EUR/USD Daily chart

Euro Outlook: EUR/USD Faces Downside Risk Ahead of ECB

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES