EUR/USD retreats to 1.0645 lows following dovish comments from ECB members
18.04.2024, 16:48

EUR/USD retreats to 1.0645 lows following dovish comments from ECB members

  • Euro recovery fails ahead of 1.0700 and ECB policymakers point to a June rate cut.
  • In the US, strong employment levels and some hawkish comments by Fed’s Williams have provided a fresh boost to the USD.
  • The EUR/USD remains vulnerable, dangerously close to the mid-term low at 1.0600.

The Euro recovery has been capped a few pips shy of the 1.0700 area, and the pair pulled lower on Thursday, to hit intra-day lows at 1.0645. The dovish comments by ECB policymakers and strong US data endorsing the Fed’s “higher for longer” outlook have weighed the common currency.

Earlier today ECB’s Vice-President Francoise Villeroy, affirmed that, barring a major surprise the bank will cut rates in June. These words have been echoed by the Governor of the Austrian central bank and notorious hawk, Robert Holzmann.

US data confirms the strong economic outlook

In the US, macroeconomic data has endorsed the picture of a strong economy with a tight labour market. Jobless claims remain steady at relatively low levels while a manufacturing activity gauge has reached its best reading in two years.

Beyond that, the New York Fed President, John Williams has reiterated that there is not an urgency to lower interest rates, which has sent US yields and the US Dollar up from intra-day lows.

The near-term bias remains neutral, with the pair unable to put a significant distance from five-month lows. 1.0700 is the immediate resistance, followed by 1.0730 and 1.0755. Support levels are 1.0605 and 1.0553.

EUR/USD

Overview
Today last price 1.0656
Today Daily Change -0.0017
Today Daily Change % -0.16
Today daily open 1.0673
 
Trends
Daily SMA20 1.0776
Daily SMA50 1.0816
Daily SMA100 1.0857
Daily SMA200 1.0824
 
Levels
Previous Daily High 1.068
Previous Daily Low 1.0606
Previous Weekly High 1.0885
Previous Weekly Low 1.0622
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0652
Daily Fibonacci 61.8% 1.0634
Daily Pivot Point S1 1.0626
Daily Pivot Point S2 1.0579
Daily Pivot Point S3 1.0552
Daily Pivot Point R1 1.07
Daily Pivot Point R2 1.0727
Daily Pivot Point R3 1.0773

 

 

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