EURUSD retreats from its previous gain to 1.1090. prior ECB, later on, Thursday, the ECB is anticipated to raise rates by 25 basis points.
EURUSD loses initial gains to a region around 1.1100.
After a previous unsuccessful effort to hit 1.1100 in the hours after Thursday’s starting bell in Euroland, The EURUSD is currently losing some of its recent optimism and retreating to the mid-1.1000s.
EURUSD currently focuses on Lagarde and the ECB.
On Thursday, the EURUSD has so far been unable to rise for a third straight session. And remains under pressure at 1.1050 ahead of the important ECB event scheduled for later in the morning.
Considering this, the ECB is seen increasing the policy rate by 25 basis points. However, a greater rate increase (or perhaps 50 basis points) is not entirely off the cards. Given hardline remarks from rate managers, and the ongoing high inflation rate.
The German 10-year Bund yields, however, lost ground for two straight days. Prior to staging a weak comeback to reach near the 2.30% region.
The final Services PMIs for Germany and the euro region for the month of April were 56.0 and 56.2, accordingly. The US Balance of Trade report is coming after the customary weekly Jobless Claims report.
What to keep an eye out for about EUR
With the dollar being weak and traders being cautious ahead of the ECB meeting. The EURUSD’s trend upward is now focusing on the 2023 top at 1.1100.
When it comes to the banks’ intentions on the likely future adjustments in interest rates. The market activity related to the euro should keep on close track of dollar fundamentals and the Fed-ECB gap.
Going ahead, hardline ECB- remarks continue to support more rate increases. Despite the fact that some impetus in the region’s economic fundamentals has been lost.
Important problems with the back burner:
the cycle of ECB rate hikes is ongoing. Impact of the War between Russia and Ukraine on regional inflation and development prospects. risks of persistent inflation.
Technical Perspective, Levels, and Indicators
The currency pair is now trading at 1.1054, up 0.05%, and faces support at 1.0941 (the month’s bottom set on May 2). 1.0909 (the week’s bottom made on April 17), and lastly 1.0831 (the month’s bottom posted on April 10). On the contrary. If 1.1095 (2023 top April 26) wins out, 1.1100 (a round mark) and 1.1184 (a week’s peak March 21, 2022) could serve as the next targets.
INDICATORS
| Name | Value | Action |
| RSI(14) | 44.563 | Sell |
| STOCH(9,6) | 59.376 | Buy |
| STOCHRSI(14) | 0.000 | Oversold |
| MACD(12,26) | 0.001 | Buy |
| ADX(14) | 46.785 | Sell |
| Williams %R | -87.499 | Oversold |
| CCI(14) | -147.3390 | Sell |
| ATR(14) | 0.0014 | Less Volatility |
| Highs/Lows(14) | -0.0018 | Sell |
| Ultimate Oscillator | 35.011 | Sell |
| ROC | -0.122 | Sell |
| Bull/Bear Power(13) | -0.0041 | Sell |
| Buy: 2
Sell: 7 Neutral: 0 Summary: ELL |
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Caution is advised in selling, as Euro is already in oversold territory. In case the ECB comes up with some hawkish comments about the expected rate increase, the Euro is likely to surge upward with a spike,
