ECB jawboning, US dollar gains weigh heavily on EUR/USD. Focus shifts to the ECB Sintra Forum for fresh direction. The EUR/USD pair fell sharply to test Monday’s lows near 1.1530 levels in a knee-jerk reaction to the comments from the ECB Governing Council members Nowotny and Villeroy. Nowotny jawboned the common currency, citing that he sees the Euro depreciating against the US dollar while Villeroy said that he doesn’t see any rate hike until the summer of 2019. The spot managed to quickly reverse the dip and reverted to the familiar range near 1.1570 region, having found some support from the recovery in the German 10-year yields. Recall that the German 10-year yields hit fresh three-week lows of 0.350% a day before, in the wake of escalating US-Sino trade tensions induced risk aversion. However, the latest move higher appears to have lost legs on the back of broad-based US dollar strength and amid increased nervousness ahead of the ECB Central Banking Forum in Sintra. Top central banks’ Heads are scheduled to participate in a panel discussion due at 1330 GMT, with the key highlight likely to be the remarks from the Fed Chair Powell and ECB Chief Draghi, which could reinforce the divergent monetary policy outlooks between both continents. Meanwhile, markets keep a close eye on the flattening US 2yr-10-yr yield curve, which is expected to invert soon. The expectations of an inverted yield curve could emerge EUR-supportive in the coming days. EUR/USD Technical Levels Yohay Elam, FXStreet’s Analyst notes: “The trend is bearish with Momentum pointing down and the RSI still above 30, avoiding oversold territory. The pair also trades below the 50-day and 200-day Simple Moving Average. The grind lower continues. Support is found around 1.1530-1.1540, the low levels the pair traded at on Tuesday and on Friday. The 2018 low of 1.1510 is a strong line of support. Further down, 1.1480 is a veteran line from July 2017. Looking up, 1.1610 was a swing low early in the month. 1.1650 capped the pair on Tuesday and was also the May 25th low. 1.1730 served as support last week.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Tron price is bullish ahead of the much-awaited token migration, while Independence Day Elections are only 6 days away FX Street 3 years ECB jawboning, US dollar gains weigh heavily on EUR/USD. Focus shifts to the ECB Sintra Forum for fresh direction. The EUR/USD pair fell sharply to test Monday's lows near 1.1530 levels in a knee-jerk reaction to the comments from the ECB Governing Council members Nowotny and Villeroy. Nowotny jawboned the common currency, citing that he sees the Euro depreciating against the US dollar while Villeroy said that he doesn't see any rate hike until the summer of 2019. The spot managed to quickly reverse the dip and reverted to the familiar range near 1.1570 region, having found some support from… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
