Euro Dollar Fundamental Overview
Germany’s preliminary HICP report for June showed that price pressures had eased more than expected, opening the door for the ECB to make consecutive rate cuts. However, officials refrained from providing a specific path for rate cuts, fearing that an aggressive policy easing campaign could renew price pressures.
ECB President Christine Lagarde said at the ECB Forum on Monday: “It will take time to gather enough data to be confident that the risks of above-target inflation have passed.“. She added that The strong job market means we can take time to gather new information.
Thus, the euro-dollar remains under pressure due to the prospect of lower inflation in the Eurozone and political uncertainty in France. However, US economic data and statements from FED officials could provide further guidance on the future path of fiber.
Technical Analysis and Euro Dollar Forecasts
At the time of writing, the price of fiber is trading at 1.0711, down 0.26% after failing to hold above the annual level of 1.0764. Since then, the pair has been under strong bearish pressure, leading to the current situation, where a close below the support of 1.0680 would lead the bears of the pair to reach the annual level of 1.0643.
On the other hand, a close above 1.0730, even if in negative territory, could push the euro-dollar to retest the annual level of 1.0764, the overcoming of which would lead the bulls of the currency to consider reaching the key level of 1.0800.
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