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25 Jul 2019
EUR/USD technical analysis: Euro reverses up from new 2019 low and challenges daily highs, after ECB
- EUR/USD hits a new 2019 low at 1.1101 on dovish comments from the European Central Bank (ECB).
- EUR/USD reverses up from 1.1101 and now challenges the daily highs.
EUR/USD daily chart
EUR/USD is trading in a bear trend below the main daily simple moving averages (DSMAs). The market is trading at new 2019 lows as the European Central Bank leaves the interest rate unchanged. Furthermore, the ECB is considering further Quantitative Easing (QE), which the market sees as negative for the European currency. As ECB’s Mario Draghi is speaking, the shared currency reached a new 2019 low at 1.1101.
EUR/USD 4-hour chart
The market is trading below the 1.1164 resistance and the main SMAs, suggesting bearish momentum in the medium term. The turnaround is rather large, therefore conveying a mixed technical picture. The bulls seem to have taken the lead as they are threatening to break above 1.1164 resistance. A break above this level can lead to 1.1194 resistance, according to the Technical Confluences Indicator. Supports are seen at 1.1148 and 1.1130 levels.