EUR/USD Forex Signal Today 17/07: Rebound Likely (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the EUR/USD pair and set a take-profit at 1.1750.
• Add a stop-loss at 1.1550.
• Timeline: 1-2 days.

Bearish view

• Sell the EUR/USD pair and set a take-profit at 1.1550.
• Add a stop-loss at 1.1750.

The EUR/USD pair pulled back on Thursday morning as traders reflected on the latest US inflation data and the idea that Donald Trump was considering firing Jerome Powell from the Fed. It dropped to a low of 1.1575, down from the year-to-date high of 1.1826.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Trump Denies Intention to Fire Powell

The EUR/USD pair was relatively volatile after a White House official confirmed that Trump was considering firing Jerome Powell, the Chair of the Federal Reserve.

Some Republican members of the House of Representatives also confirmed that Trump had asked them about that. However, in a statement to the media, Trump expressed his frustrations about Powell and confirmed that he was not considering firing him.

Trump has been frustrated about Powell since he became president, pointing to the fact that he has refused to cut interest rates. He believes that the official cash rate should be near zero, much lower than the current range of between 4.25% and 4.50%.

The EUR/USD volatility was muted because Trump can only fire Powell for cause, such as gross misconduct. The White House is assessing whether this misconduct can be identified during the ongoing renovations at the Fed building.

Looking ahead, the US will publish several important macroeconomic data that may impact the pair. The Bureau of Labor Statistics (BLS) will publish last week's initial and continuing jobless claims data.

The other key numbers to watch that will provide more color on the state of the economy are the US retail sales, the Philadelphia Fed manufacturing index, and business inventories.

These numbers will follow the US release of mixed inflation data. The headline and core consumer price index (CPI) rose in June, while the producer price index fell.

EURUSD Chart by TradingViewEUR/USD Technical Analysis

The daily chart shows that the EUR/USD exchange rate has pulled back in the past few days. It retreated from the year-to-date high of 1.1826 to 1.630 today.

This decline was notable because the pair retested the key support level at 1.1574, the highest swing on April 21. That could be a sign of a break-and-retest pattern, a popular continuation sign.

It has also remained above the 50-day Weighted Moving Average (WMA). The Relative Strength Index (RSI) has pointed downwards. Therefore, the pair will likely resume the uptrend as investors buy the dip and target the year-to-date high of 1.1825.

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