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

FXStreet
Updated Apr 19, 2024 02:18
Mitrade

■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


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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