EUR/USD Current Price: 1.1856
- US FOMC Meeting’s Minutes lift the greenback as policymakers hinted against yield-curve control.
- Inflation in the Union contracted in July 0.4% MoM, core annual CPI hit 1.2%.
- EUR/USD under 1.1900, but bulls not giving up just yet.
The greenback got to recover some ground this Wednesday, rising during the US session against most of its major rivals. There was no particular catalyst behind the advance, as equities traded with modest gains while US Treasury yields edged marginally lower ahead of the release of the FOMC Meeting’s Minutes. The document was quite similar to the one of the previous meeting, although it added an encouraging line, as policymakers said that economic activity and employment have picked up somewhat in recent months, nothing that anyway remain well below their pre-pandemic levels. The document gave the greenback another lift against its major rivals.
Earlier in the day, the EU released its June Current Account, which came in at €20.69 B better than the previous €7.95 B. The Union also published July inflation, with the monthly CPI down to -0.4% from 0.3% in the previous month. The annual figure, however, came in as expected at 0.4%, while the core annual CPI hit 1.2%, as expected.
This Thursday, the EU will publish June Construction Output, while the ECB will publish the Accounts of its latest meeting. The US macroeconomic calendar will include the August Philadelphia Fed Manufacturing Survey, seen at 21 from 24.1 and Initial Jobless Claims for the week ended August 14, expected at 925K from 963K in the previous week.
EUR/USD short-term technical outlook
The EUR/USD pair accelerated its slump after losing the 1.1900 level, trading as long as 1.1829. It is now trading below an ascendant trend line coming from the 1.1710. The 4-hour chart shows that the pair has broken below a bullish 20 SMA, trading a few pips below it. Technical indicators have fallen below their midlines, suggesting additional declines ahead. The immediate support is 1.1820, with a steeper decline expected once below this last.
Support levels: 1.1820 1.1775 1.1730
Resistance levels: 1.1860 1.1915 1.1960
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