EUR/USD Is Pressuring Weekly Lows And Poised To Extend Its Slump

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

EUR/USD Current Price: 1.1772

  • The ECB kept its monetary policy unchanged, presented vague forward guidance.
  • EU data was worst than anticipating, spurring demand for safe-haven assets.
  • EUR/USD is pressuring weekly lows and poised to extend its slump.

The EUR/USD pair is ending Thursday in the red and at weekly lows, trading at around 1.1770 after a failed attempt to break higher. The European Central Bank announced its decision on monetary policy, and as widely anticipated, it left rates and the facilities programs unchanged. The announcement was disappointing as the so-awaited forward guidance was vague. The Government Council noted that interest rates will remain at present or lower levels “until it sees inflation reaching two percent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realized progress in underlying inflation is sufficiently advanced.”

President Christine Lagarde added that the economy is on track for strong growth in Q3 but added that the coronavirus Delta variant could dampen the recovery in services while bottlenecks could affect manufacturing in the short term. Meanwhile, the US published Initial Jobless Claims for the week ended July 16, which increased to 419K, missing the market’s expectations. The Chicago Fed National Activity Index printed at 0.09 in June, down from the previous 0.26. Finally, Consumer Confidence in the EU resulted in -4.4 in July, worse than anticipated. On Friday, Markit will publish the preliminary estimates of its July PMIs for the EU and the US.

EUR/USD short-term technical outlook

The EUR/USD pair trades at the lower end of its weekly range, bearish in the near term. The 4-hour chart shows that the pair aimed to break above the roof of the descendant channel that guides price since June. The pair topped around a mildly bearish 100 SMA, now developing below all of its moving averages. Technical indicators consolidate within negative levels, skewing the risk to the downside without confirming another leg south.

Support levels: 1.1755 1.1720 1.1685

Resistance levels: 1.1840 1.1885 1.1920

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Posted In: EURFXStreetPartner ContentusdNewsEurozoneGlobalMarketsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.