July 23, 2021

ECB Meeting Results Press EUR/USD Down Again

 The gloomy movement of the US dollar towards the weekend following the US unemployment claims data published in the New York session yesterday again recorded a rebound.

The US dollar is seen moving weaker against most other major currencies in the market except the Euro.

The Euro currency displayed a brisk movement yesterday with the main focus of investors focused on the outcome of the European central bank’s policy meeting which saw the value of the Euro fall.

As the market had expected, the European Central Bank (ECB) maintained a loose policy in its latest meeting and signaled that interest rates will continue to remain low until the inflation target is reached.

Technical angle view on the chart of the EUR/USD currency pair yesterday, the price initially made a rise to the level of 1.18300 is seen to have plunged back around 70 pips below the level of 1.17600 after the results of the ECB meeting.

The price then moved horizontally until the end of the New York session and the movement below the Moving Average 50 (MA50) barrier level on the 1 hour time frame again gave a bearish signal.

Continuing the Asian session on Friday morning, the price moved slowly around the 1.17800 level with the expectation that the lower price decline will continue in the next session.

The decline will lead to the support zone 1.17200-1.17000 to test the zone again as in March trading before recording the latest low since November 2020.

However, if the price rebounds above the 1.18000 level, investors will see it as an early indication of a bullish trend of the price again.

The next price increase will be driven towards the previous focus resistance zone at 1.19000.

Investors ’focus on weekend trading will be focused on economic sector data for manufacturing and services in Europe and the US that will affect both the Euro and US dollars.