EURUSD to Continue backed by an aggressive ECB stance. Today’s ECB Symposium has a sensational lineup of central bank officials

EURUSD Key Points to Watch

Support for the EURUSD will continue from hawkish ECB talk.

Officials of the BoJ, BoE, ECB, and US Fed join the podium today as part of the ECB Forum’s mega lineup of central bankers.

The Gfk Consumer Confidence Index in Germany declines.

EURUSD weighs US data as well as Central Banks

Despite the US Dollar’s power returning during the US session as a result of encouraging US data, The EURUSD saw a respectable gain Tuesday. Continuing aggressive remarks by (ECB) officials during the ECB Summit in Sintra, Portugal, nonetheless mainly negated this.

Source: FinancialJuice

Despite indications of a downturn in the Euro Region. Sources claim that officials at the ECB find little justification for pausing rate increases at this time. Having heard more from policy man Luis de Guindos earlier in the day, who said that the rate rise for July is already fixed. And the one for Sept probable depending on statistics. Despite EURUSD expected to stay within range. This persistently aggressive language will probably to maintain the Euro stable in the meanwhile.

Consumer confidence and French inflation according to GFK

German statistics during the last week has been detrimental to the Euro Region. Showing signals of contraction and declining morale. During a recent assessment about the growth expectations for the German economy. The central bank stated the same, noting that Q2 is expected to see only modest increase. Prior the decrease witnessed from today’s reading, which showed in at -25.4 Vs. -23 expected number. The Gfk Consumer Confidence score has been on a continuous increasing track from October 2022. Positively, French investor confidence increased marginally but is still in the gloomy range with a reading at 85, a rise from 83.

With Italian inflation, there aren’t many risky events scheduled for today in the Euro Union and the US. The sole noteworthy item is the US Bank Pressure Testing. Given how market sentiment is expected to fluctuate, the (ECB) Symposium will probably continue to play a significant role in market movements. Powell, Ueda, Bailey, and ECB’s Lagarde will be on a powerful board of monetary policymakers today at the ECB Summit.

Technical Perspective

From a technical standpoint, analysts remain to see conflicting indications for EURUSD. With a structural fail, the previous day’s bullish engulfing candle closure. Likewise painted a Morningstar structure.  Which suggested an extension of the bullish trend in contrast to the broader price action image.

As was already said, the basic factors now in action seem to be driving the EURUSD unit. Hardline words by Fed Chair Jerome Powell later in the day may limit any efforts at getting back over the 1.1000 barrier. Whereas ECB purists are expected to keep the Euro maintained over the 1.0900 mark. As the bullish and bearish battle goes on, prudence and a near-term strategy inside the current range might represent the best course of action at present.

Major Levels

Support

• 1.0875 (50-day MA)
• 1.0814 – 100 day)
• 1.0747

Resistance

• 1.0950
• 1.1000
• 1.1100