The EUR/USD pair traded below 1.0900 after closing negatively on Thursday, influenced by dovish remarks from ECB officials. The bearish sentiment in the market is hindering the pair’s ability to regain momentum.
Euro PRICE This week
The Euro weakened against major currencies this week, with the Swiss Franc emerging as the strongest performer.
The European Central Bank (ECB) kept policy settings unchanged in its July meeting, with President Christine Lagarde expressing concerns about downside risks to growth. Market uncertainty and vague policy outlook triggered a decline in EUR/USD.
ECB officials Francois Villeroy de Galhau and Gediminas Šimkus echoed the sentiment of market expectations for rate cuts, adding to the Euro’s bearish pressure.
The lack of high-impact US economic data on Friday could maintain safe-haven flows, supporting the USD against the Euro.
EUR/USD Technical Analysis
The RSI indicator on the 4-hour chart dipped below 50, signaling a bearish shift. Immediate support is at 1.0880, followed by 1.0840 and 1.0820. Resistance levels are at 1.0900, 1.0950, and 1.1000.
Euro FAQs
The Euro is the second most traded currency globally, with EUR/USD being the most popular pair. The ECB manages monetary policy to maintain price stability and stimulate growth.
Eurozone inflation, economic data releases, and trade balance are key factors that influence the Euro’s strength in the market.
Overall, the Euro’s performance against the USD is currently under pressure due to dovish ECB comments and market uncertainty. Traders should monitor key support and resistance levels for potential trading opportunities.