After marking a new annual high at; 1.1277 on Tuesday, EUR/USD corrected to 1.1277 Wednesday, stepping back to a hollow at 1.1175, but the bulls are defending themselves as the currency pair rallied back to 1.1175. 1.1220 at the time of writing this Thursday morning.
Recall that the Dollar has been affected by disappointing economic indicators this week, including retail sales and industrial production below expectations on Tuesday, as well as housing starts and building permits on Wednesday.
Against this backdrop, expectations of a Fed rate hike have receded. Indeed, although the market still expects with virtual certainty a 0.25% rate hike at the next FOMC meeting on July 26, bets on a further rate hike before the end of the year have receded.
>> Follow the evolution of market expectations; for upcoming Fed meetings using the Investing.com Rate Barometer
On the other hand, the higher-than-expected Eurozone inflation data released on Wednesday suggests that the ECB will need to do more. move further in tightening monetary policy to keep inflation in check.
As for Thursday, forex traders will still have to watch a slew of statistics important US data, with the weekly jobless claims and the Philadelphia Fed index at the bottom. 2:30 p.m., then with sales of existing homes at 2:30 p.m. 4 p.m., and the balance of the Fed at 10:30 p.m.
>> Find in real time the result of all the important statistics for EUR/USD in the Investing.com economic calendar.
Technical thresholds to watch on EUR/USD
From a chart perspective, Tuesday's high at 1.1277 and the psychological level of 1.13 form the first resistance on the upside path of EUR/USD.
On the downside, it’s the area of 1.12-1.1175 which is the first support at low levels. watch ahead of the 1.1090-1.11 area, below which the EUR/USD positive trend on a daily basis would start to break. to be questioned.
>> EUR/USD technical signals highlighted; regularly await you here!
Banks are becoming cautious on the Euro Dollar
It is also interesting to note that the most recent bank notes show that analysts are becoming more cautious on the Euro Dollar. ;-vis the rise of the Euro Dollar on recent gains.
The Company Generale has indeed estimated that yesterday that’ “ A push to a EUR/USD range of 1.15-1.20 probably requires two things: improved expectations for Eurozone GDP growth and a stronger belief that the ECB will continue to ; to raise rates after the end of the Fed ».
For its part, Commerzbank (ETR:CBKG) declared; that “ despite shock and wound dressing following; the fall of the dollar, also keep an eye on the euro, because it could well stop soaring very soon ».
Finally, a more technically, analysts at Scotiabank have pointed out; that a break of EUR/USD below 1.12 would open the way towards 1.1125, further highlighting that the currency pair is struggling to hold its own. stay above 1.1250.
EUR/USD remains well oriented but banks doubt a bigger rise
