Euro Paused Amid Looming ECB Rate Cut Call

Fundamental Analysis

* ECB Alert: The Euro lost its recent bullish momentum, sharply declining after briefly surpassing 1.0900, as traders brace for Thursday’s ECB rate decision. ECB officials are expected to prepare investors for another rate cut, though only after the Governing Council’s extended summer break between decisions. While another rate cut following June’s quarter-point reduction is anticipated, it is expected to occur in September, with a third cut planned for December. Several policymakers prefer making decisions during quarterly meetings when new projections are available.

Technical Analysis

* Technical Breakout: EURUSD was traded lower following prior retracement from the resistance level 1.09200. MACD which illustrate bearish momentum signal suggest the pair to further extend its retracement.

* Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards 1.08600. Conversely, a potential continuation is also to be expected and the price could head towards 1.09200.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving ahead, investors will focus on upcoming U.S. data, such as Retail Sales. Additionally, the market’s attention will be on the ECB Interest Rate Decision, scheduled for release on July 18. Investors will closely watch for any clues from President Christine Lagarde regarding the prospects for the September 12 meeting.

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Monitoring

Stay updated on US and Eurozone data, central bank updates and any shifts in the US Dollar’s strength. by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.