EUR/USD Drops After Thursday’s Rebound

  • EURUSD
    (${instrument.percentChange}%)

EUR/USD - H1

The common currency managed to stage a solid rebound yesterday, but today, it faces renewed pressure on the back of fresh dovish ECB rhetoric.

As such, the current week draws to a close in the same manner it had begun - with dovish remarks by the President of the European Central Bank and blow to the Euro.

On Monday Ms. Lagarde had pushed back against monetary tightening and today she drives the same message home, commenting that "we must not rush into a premature tightening when faced with passing or supply-driven inflation shocks". [1]

This keeps the ECB/Fed monetary policy divergence into the spotlight, a factor that works against EUR/USD, as the US central bank has already announced QE tapering and some of its memebrs have been vocal about rate hikes within the next year.

The pair rejected key near-term resistance, provided by the EMA100 (black line), after yesterday's relief-rally, sparking renewed selling pressure, along with Ms. Lagarde's dovish rhetoric.

The downward momentum remains intact and there is high risk for a breach 1.13000, although new 2021 lows and test of mid-1.1200s may prove harder for now.

Trade the News: View our Economic Calendar

On the other hand, a new push for the EMA100 (1.3465-75) is not ruled out, but a strong catalyst is needed for larger recovery, that will allow the Euro to look towards 1.1400.


Past Performance: Past Performance is not an indicator of future results.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 01 Dec 2021 https://www.ecb.europa.eu/press/key/date/2021/html/ecb.sp211119~3749d3556c.en.html

Published

Daily Market Snapshot

Most Popular Shares AU Shares Forex Stock Baskets Forex Baskets Cryptocurrencies Indices Commodities

Most Popular

Shares

AU Shares

Forex

Baskets

Baskets

Cryptocurrencies

Indices

Commodities

Most Popular

Shares

AU Shares

Forex

Stock Baskets

Forex Baskets

Cryptocurrencies

Indices

Commodities

Most Popular

Shares

AU Shares

Forex

Stock Baskets

Forex Baskets

Cryptocurrencies

Indices

Commodities

Symbol Bid Ask Spread Change
${instrument.name} ${instrument.name} ${instrument.bid} ${instrument.ask} ${ instrument.spread | formatSpread } ${instrument.percentChange}%

Last Updated: ${lastUpdated}

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)