The announcement of 30% American tariffs on the EU from 1 August caused some negativity on the prospects for the bloc’s economy, but as with any similar announcement so far this year it’s likely that the figure can be negotiated down or just backtracked by the American government. A more immediate important factor driving euro-dollar down has been the significant rise in American annual headline inflation in June to 2.7%. The ECB is likely to cut once more this year and the Fed twice, but there’s some intrigue on the timing of the latter.
The retreat from the area of $1.18 – a high of nearly four years – has so far been fairly consistent with some momentum. However, $1.16 still seems to be an important battleground, with the long wick on 16 July indicating buying pressure. With the price currently oversold and there not being a clear uptick in selling volume, the 50 SMA around $1.155 might be an important short-term dynamic support.
A move back up to the 38.2% monthly Fibonacci retracement around $1.166 seems possible in the next few days depending on the volume of buying and reactions to upcoming news. For now, the movement seems more like a relatively small retracement in the context of the uptrend than the beginning of a new downward or sideways trend, but this depends on the reaction to the ECB’s meeting on 24 July as well.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
The retreat from the area of $1.18 – a high of nearly four years – has so far been fairly consistent with some momentum. However, $1.16 still seems to be an important battleground, with the long wick on 16 July indicating buying pressure. With the price currently oversold and there not being a clear uptick in selling volume, the 50 SMA around $1.155 might be an important short-term dynamic support.
A move back up to the 38.2% monthly Fibonacci retracement around $1.166 seems possible in the next few days depending on the volume of buying and reactions to upcoming news. For now, the movement seems more like a relatively small retracement in the context of the uptrend than the beginning of a new downward or sideways trend, but this depends on the reaction to the ECB’s meeting on 24 July as well.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.