- EURUSD appears to have met strong resistance above 1.1730 in early trade, sparking the ongoing knee-jerk to the 1.1670 region.
- A breakout of the immediate target in the 1.1745 area should pave the way for a re-test of 1.1790 ahead of June’s peaks in the mid-1.1800s.
- On the downside, the 50-day EMA should offer interim support ahead of the 21-day EMA. The critical area, however, remains the 1.1500 zone, which should spark another bout of EUR-weakness to the 1.13 region if cleared.
INFLUENTIAL INSTITUTIONS & PEOPLE FOR THE EUR/USD
The Euro-US Dollar can be seriously affected by news or the decisions taken by two main central banks:
The European Central Bank (ECB)
The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability, so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is the one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council and the General Council. Mario Draghi, member of the Executive Board, is also the President of this organism.ECB Official Website, on Twitter and YouTube
The EUR/USD (or Euro Dollar) currency pair belongs to the group of ‘Majors’, a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity is due to the fact that it gathers two main economies: the European and American (from the United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.