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Gerard Moore 21 / July / 22

EUR/USD rate slowed down ahead of the growth of the consumer price index

The recovery of the euro / dollar has slowed down
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Risk appetite at the beginning of the day benefited the euro, but the decline in profits on European exchanges before closing and the fall of stock exchanges in the United States indicated a more mixed sense of risk as the day progressed.

Today, EUR/USD traders' attention will be more focused on the economic chart, including the second assessment of the eurozone consumer price index for June, which is expected at 11:00. Nevertheless, trading may remain limited, given that the most important event of the week for the euro-dollar will have to wait until Thursday with the ECB meeting.

Consensus agrees with a 0.25% rate hike, but it is possible that the Central Bank will be surprised by a more significant rate hike, as Goldman Sachs (NYSE: GS) bank noted in a note published yesterday :

"We expect the Governing Council to raise the guidance rates by 25 points next week and provide additional details on its sovereign support. Although the sharp depreciation of the euro, recent actions by central banks abroad and the possibility of further increases in inflation expectations suggest that an increase of 50 basis points is possible, we believe that an increase of a quarter point remains likely," the Bank writes.

Technical thresholds to pay attention to in EUR/USD

From a graphical point of view, the 1.0190-1.0220 area is the first significant resistance on the way to EUR/USD in the short term. Nevertheless, the retreat on the daily chart indicates that the downtrend of the euro-dollar will begin to be questioned only if it returns above 1.0350.

On the other hand, 1.0100 is the first potential support to parity, followed by a 20-year low marked last week at 0.9952.


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