European Currencies Adjust to Support Levels: Is Growth Possible?

FXOpen

A week rich in macroeconomic data contributed to the decline of the euro, yen, and pound. Notably, the following events were significant:

  • Inflation falling for the second consecutive month (0.2% against the expected 0.3%);
  • The publication of the updated forecast from the Federal Reserve (one reduction in the federal funds rate by 0.25%, presumably in September).

Nonetheless, despite the hawkish stance of the Federal Reserve and the steady slowdown in inflation, European currencies managed to stay above key levels relative to the dollar, even laying the groundwork for forming reversal patterns.

GBP/USD

According to the technical analysis of the GBP/USD pair on the daily timeframe, a "piercing candle" pattern was formed yesterday. If the pair closes with any bullish candle today, the price might reach recent highs around 1.2860-1.2810. A resumption of the downtrend is possible with a confident hold below 1.2650. The following news might impact GBP/USD pricing:

  • Today at 15:30 (GMT +3:00) the US core retail sales index for May;
  • Today at 15:30 (GMT +3:00) the US retail sales volume;
  • Tomorrow at 09:00 (GMT +3:00) the UK consumer price index (CPI) for last month.

EUR/USD

Technical analysis of the EUR/USD pair suggests a potential corrective rise towards 1.0800, provided the "bullish engulfing" pattern formed yesterday is realised. If the price falls below 1.0660, a retest of the April low around 1.0600 is possible. Today, important macroeconomic data from the eurozone is expected:

  • At 12:00 (GMT +3:00) the ZEW economic sentiment index for the eurozone;
  • At 12:00 (GMT +3:00) the eurozone consumer price index (CPI).

Experts forecast a rise in these indices, which may support the strengthening of EUR/USD.

Also important for EUR/USD pricing will be the scheduled speech by the Vice-President of the European Central Bank, Luis de Guindos, at 16:30 (GMT +3:00).

Read analytical EUR/USD price forecasts for 2024 and beyond.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. 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.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Commodities

Market Analysis: Gold Price and Crude Oil Price Face Hurdles

Gold price started a fresh decline below $2,665. Crude oil prices are now struggling to clear the $70.00 and $70.50 resistance levels.

Important Takeaways for Gold and Oil Prices Analysis Today

  • Gold price climbed higher toward the
Trader’s Tools

Santa Claus Rally: How Will Christmas Impact Stock Markets in 2024

The Santa Claus rally is a well-known seasonal phenomenon where stock markets often see gains during the final trading days of December and the start of January. But what causes this year-end trend, and how does Christmas influence stock markets

Forex Analysis

GBP/USD Analysis: Pair Recovers from 7-Month Low

The GBP/USD pair dropped below the psychological level of 1.25 today, a level last seen in early May. Over the past two days, the pair has declined by more than 1.5%, driven by central bank decisions.

On

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.