EUR/USD Pulls Back Ahead of ECB and Sentiment Data.
EUR/USD slips as focus shifts to Eurozone Consumer Sentiment and upcoming ECB decision.
FUNDAMENTAL OVERVIEW:
The EUR/USD pair edged lower on Wednesday, retreating after a three-day rally of 1.3%, as investor focus shifts to Eurozone Consumer Sentiment data and Thursday’s ECB policy decision.
The Euro pulled back from Tuesday’s two-week high of 1.1760, trading around 1.1730 in early European hours. While the broader trend remains positive after rebounding from last week’s low of 1.1555, the pair is struggling to hold above the former resistance-turned-support at 1.1720.
Optimism from the U.S.–Japan trade deal briefly lifted market sentiment but failed to sustain gains in the Euro, as progress toward a U.S.–EU agreement remains uncertain. EU officials are headed to Washington for negotiations, though the bloc is also preparing retaliatory measures should talks stall.
On the data front, Wednesday’s key release is the preliminary European Commission Consumer Sentiment Index for July. However, markets are more closely watching Thursday’s ECB meeting, which is expected to shed light on the central bank’s monetary policy outlook and its assessment of the Eurozone economy.
EUR/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
EUR/USD is trading within a up channel.
EUR/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 1.1760
Immediate support level: 1.1700
HOW TO TRADE EUR/USD
EUR/USD initially moved higher before pausing and entering a correction phase, retracing down to a support level. It then regained strength, breaking above a key resistance. Currently, the pair is pulling back toward support again—if this level holds, it may resume its upward trend.
