EUR/USD Rises to 2.5-Week High Ahead of ECB Meeting
FXOpen
Today at 15:15 GMT+3, the European Central Bank (ECB) will announce its interest rate decision, followed by a press conference at 15:45 GMT+3. According to Forex Factory, the main refinancing rate is expected to remain unchanged at 2.15% after seven consecutive cuts.
In anticipation of these events, the EUR/USD exchange rate has risen above the 1.1770 level for the first time since 7 July. Bullish sentiment is also being supported by expectations of a potential trade agreement between the United States and the European Union. According to Reuters, both sides are reportedly moving towards a deal that may include a 15% base tariff on EU goods entering the US, with certain exemptions.
Technical Analysis of the EUR/USD Chart
From a technical perspective, the EUR/USD pair has shown bullish momentum since June, resulting in the formation of an ascending channel (marked in blue).
Within this channel, the price has rebounded from the lower boundary (highlighted in purple), although the midline of the blue channel appears to be acting as resistance (as indicated by the arrow), slowing further upward movement.
It is reasonable to assume that EUR/USD may attempt to stabilise around the midline—where demand and supply typically reach equilibrium. However, today’s market is unlikely to remain calm. In addition to the ECB’s statements, volatility could be heightened by news surrounding Donald Trump’s unexpected visit to the Federal Reserve.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Weekly Market Insights with Gary Thomson: ECB Interest Rate, US Inflation, and UK GDP
Three key economic events could shape market sentiment in the second week of September: the ECB interest rate decision, the latest UK GDP data and US inflation figures.
In this video, Gary Thomson looks at what these releases could mean
AUD/NZD: Fresh Hikes on Both Sides, One Chart Still Undecided
The Aussie enters this week with genuine hawkish backing after Australia's Q2 GDP surprised sharply to the upside, pushing the market-implied probability of a September RBA hike from 48% to 57%, with a November move now more than fully priced.
EUR/USD Analysis: Downtrend Breakout Still Lacks Confirmation
Today, 4 September, the market’s main focus is the August US employment report. According to CNBC, the consensus forecast calls for just 53,000 nonfarm jobs to be added following July’s decline, highlighting the continued weakness of the