EUR/USD Analysis Summary Today
- Overall Trend: Neutral with a bearish bias.
- Today's EUR/USD Support Levels: 1.1570 – 1.1500 – 1.1440.
- Today's EUR/USD Resistance Levels: 1.1680 – 1.1770 – 1.1850.
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1520 with a target of 1.1800 and a stop loss of 1.1460.
- Sell EUR/USD from the resistance level of 1.1700 with a target of 1.1500 and a stop loss of 1.1770.
EUR/USD Technical Analysis Today:
The U.S. dollar fell against other major currencies during trading last night as investors watched the fallout from U.S. President Donald Trump's firing of Federal Reserve Governor Lisa Cook. While traders are focused on the possibility of the central bank cutting U.S. interest rates next month, this latest dismissal raises doubts about the institution's independence. As a result, the euro's losses against the U.S. dollar EUR/USD have stopped for now. According to reliable trading platforms, the EUR/USD price is temporarily stable around the 1.1610 level as of this writing, hovering at the 1.1600 support. More pressure on the euro will give the bears an opportunity for a deeper downward move.
In the latest intervention by Trump in the Federal Reserve's policies and officials, he announced Cook's dismissal in a social media post less than a week after he requested her resignation over alleged mortgage fraud. This also comes days after he said he would fire her if she did not resign. Cook was appointed to the Federal Reserve's Board of Governors in 2022 by former President Joe Biden and was served with her resignation papers.
In a letter to Cook, Trump wrote: "In light of your deceitful and potentially criminal conduct in a financial matter, neither the American people nor I have great confidence in your integrity." He continued, "At the very least, this behavior demonstrates a gross negligence in financial transactions that calls into question your competence and reliability as a financial regulator."
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Commenting on the event, experts say that her dismissal could be challenged in federal courts and eventually referred to the Supreme Court. The Federal Reserve Act restricts the president's authority to fire a Federal Reserve governor, but gives the president the right to do so "for cause." This "cause" provision may be subject to legal debate.
Meanwhile, the Federal Reserve declined to comment on the announcement. However, Senator Elizabeth Warren, a prominent Democrat on the Senate Committee on Banking, Housing, and Urban Affairs, described the announcement as an "autocratic power grab that brazenly violates the Federal Reserve Act." In a statement, Warren said, "The illegal attempt to fire Lisa Cook is the latest example of a desperate president looking for a scapegoat to cover up his failure to lower costs for Americans."
This comes days after Fed Chairman Jerome Powell indicated that current economic conditions "may warrant" an interest rate cut, although he did not specify a date for the first rate cut since December. As a result, investors overwhelmingly expect the central bank to cut interest rates at the Federal Open Market Committee (FOMC) meeting in September.
The EUR/USD Downward Path Remains the Strongest
As can be seen on the daily timeframe chart, the EUR/USD trend is still more inclined to the downside. Technically, a break below the 1.1600 support will give the bears a stronger opportunity to move down forcefully and test stronger support levels. The closest ones are currently 1.1540, 1.1470, and 1.1400, respectively. The recent EUR/USD losses have pushed the 14-day RSI to a reading of 47, below the neutral line, which confirms the bears' steady downward bias. At the same time, the MACD indicator lines for the 12.26 close are also pointing down. Furthermore, the technical indicators still have room to move lower before they reach oversold levels.
The EUR/USD upside scenario on the same daily timeframe would require the bulls to return the currency pair to the resistance levels of 1.1720 and 1.1800, respectively. Otherwise, the stronger bias will remain bearish. There are no major influential releases expected today for EUR/USD trading from either the Eurozone or the United States, so investor sentiment regarding economic performance and central bank policies will be the influencing factors on currency prices today.
Trading Tips:
Traders are advised to take advantage of the recent decline in EUR/USD prices to build a new buying base for the currency pair, while trading without risk, regardless of the strength of available trading opportunities.
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