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MENAFN- Daily Forex)
The stability of the European euro last week and after the latest interest rate decision by the European Central Bank. It did not last long as the price of the euro against the US dollar EUR/USD returned to move in its broader downward path with losses that reached the support level of 1.0350, which closed the week's trading near it. The gains of the euro dollar pair last week did not exceed the level of 1.0533, and then we sold the euro dollar.
Impact of the ECB's Decision on Euro Performance
According to the platforms of reliable trading companies... The stability of the euro did not last long against the rest of the other major currencies after the last interest rate meeting of the European Central Bank. In line with market expectations, the European Central Bank cut interest rates by 25 basis points in a unanimous decision. In a press release accompanying the decision, the President of the European Central Bank, Christine Lagarde, expressed that the eurozone economy“is expected to remain weak in the near term”; However, it highlighted a clear path to“recovery”. At the same time, the central bank confirmed that the future of interest rate cuts remains dependent on incoming data, which may have helped keep the single European currency afloat after the decision.
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Be careful because the euro's gains will be vulnerable to a rapid collapse as long as the eurozone economy is suffering and at the same time the dollar benefits from its demand as a safe havenThe US dollar benefits from tariffs
Amid the official approval by the US administration of tariffs on goods from global economies, starting with China, Canada and Mexico. Recently, demand for buying the US dollar as a safe haven has increased. Increasing US tariffs will negatively affect the future of the global economic recovery and increase inflation rates. Prior to that, there was an important event for the US dollar. Last week, the Federal Reserve kept US interest rates steady and maintained its hawkish tone. In general, there is no indication that they will cut interest rates again before May/June. For his part, US President Trump criticized the Fed's policy in a post on Truth Social.
The main event for the forex market was the FOMC meeting, which offered few surprises but was nevertheless interesting. The Fed kept interest rates steady as expected and gave no clues about what it might do at the next meeting in March other than that they are“in no hurry” to cut rates. The statement was mostly the same as in December, although one key milestone related to inflation caught the market's attention.
EURUSD Chart by TradingViewEUR/USD Technical Analysis Today:
There is no change in my technical view of the performance of the EUR/USD currency pair , as the general trend on the daily chart above remains bearish. As we mentioned before, the bears moving the currency pair towards and below the support level of 1.0330 will increase the selling operations and thus prepare for stronger losses. The closest performance after that will be 1.0280 and 1.0190 respectively, which will move the performance towards the parity price for the euro dollar as soon as possible. At the same time, these are sufficient levels to push the technical indicators towards strong oversold levels.
Over that period of time, the euro dollar gains will remain vulnerable to rapid selling. Currently, the closest resistance levels are 1.0470, 1.0550 and 1.0630 respectively. The performance will remain under pressure until the reaction to the US jobs numbers at the end of the week, which usually affects the market expectations for the future policies of the US Federal Reserve.
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