EUR/USD H4 chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
EUR/USD Faces Short-Term Dollar Strength Amidst Upcoming Fed and ECB Meetings
EUR/USD encountered its second consecutive daily decline, driven by a stronger US dollar, leading to its worst daily loss in a month. Despite the retreat, the pair’s overall trend remains upward, but short-term momentum has shifted in favor of the Dollar. The focus now turns to the forthcoming Federal Reserve (Fed) and European Central Bank (ECB) meetings.
Recent data from the Euro area showed a slight improvement in consumer sentiment for July, while the German Producer Price Index declined in June. The ECB is expected to raise rates by 25 basis points next week, with chances of another hike in September reaching approximately 60%. Market attention will be on the ECB’s statements for further cues.
In the US, Initial Jobless Claims declined to the lowest level since mid-May, indicating a tight labor market. Consequently, US yields surged, bolstering the US dollar. Additional reports presented a mixed picture, with the Philly Fed’s marginal rise and Existing Home Sales falling below estimates.
The US Dollar’s widespread strength exerted downward pressure on EUR/USD, while bond yields increased on both sides of the Atlantic. As the market anticipates a rate hike from the Federal Reserve next week and gauges the possibility of further hikes later in the year, the Treasury yield curve reached new weekly highs.
EUR/USD M30 Forex chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
TurnAround Point: 1.1165
Our preference
Short positions below 1.1165 with targets at 1.1115 & 1.1095 in extension.
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