The EUR/USD currency pair fell for the second consecutive day on Wednesday, trading near 1.1380 at the time of writing. Investor confidence was lifted by unexpectedly strong US job openings data released on Tuesday, easing worries about the economic impact of ongoing tariffs.
Euro Weakened by Disappointing Eurozone Inflation Figures
Meanwhile, the euro faced downward pressure after Eurozone Consumer Price Index (CPI) data came in weaker than expected. This outcome increases the likelihood that the European Central Bank (ECB) will continue cutting interest rates in the coming months.
Key Economic Data Scheduled for Wednesday
On Wednesday, several important economic releases are expected across Europe and the US:
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Spain, France, and Germany will publish service sector activity reports.
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The final Eurozone HCOB Services PMI will be released.
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The ECB will start its two-day monetary policy meeting, where a 25 basis point interest rate cut is widely anticipated on Thursday.
Market attention will focus on the press conference of ECB President Christine Lagarde following the rate decision. Investors will closely watch for any clues regarding the possibility of a pause in rate hikes in July.
US Economic Data Supports Dollar Despite Mixed Signals
In the US, strong job openings data (JOLTS) bolstered market sentiment, helping to offset weak factory orders figures. This positive outlook supported the US dollar during Wednesday’s trading session.
Later in the day, the US ISM Services PMI and ADP Employment Change reports are due. These releases are expected to guide the dollar’s next moves, as US trading partners prepare to submit their “best offers” in ongoing trade negotiations, which remain unresolved.
Technical Analysis: EUR/USD Faces Resistance Near 1.1455
EUR/USD reached a six-week high of 1.1450 on Monday but failed to hold that level. Since then, the pair has retraced to around 1.1380, settling near the midline of the 1.1300 range.
The short-term trend is still bullish. However, technical indicators on the 4-hour chart are moving toward bearish territory. At the same time, the US Dollar Index is gaining strength, although some correlation studies suggest it may pull back slightly on Wednesday.
Currently, EUR/USD faces resistance at 1.1410 and the Tuesday high of 1.1455. On the downside, support levels stand at 1.1365, 1.1310, and the lows around 1.1210 seen on May 20 and May 29.
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