EUR/USD Daily Fundamental Forecast – July 19, 2017

The dollar continued to suffer across the board with the main reason for the fall being the fact that neither the US nor the Fed has done anything to support the dollar so far. With the economic data coming out of the US not being very good and with the political turmoil continuing, the dollar has very few supporters at this point of time and so far, the Fed seems fine in allowing the dollar to continue to be weak.

EURUSD Continues Higher

Yesterday, it was the news of the failure of the healthcare reform bill which led to a bout of dollar selling during the Asian and European session. This continued during the US session as well and this helped the EURUSD pair to push towards the 1.1580 region but the 1.16 round figure managed to hold on and this helped the dollar to recover a bit. The pair has fallen back below 1.1550 as of this writing and it might choose to take a rest awhile here.

The euro did not have to do much yesterday as it was all about the dollar weakness but with the EURUSD pair set to have a lot of hurdles in the coming days with some large and important price regions looming ahead, we should have some interesting days ahead. The tapering talk from the ECB is unlikely to go away anytime soon and we believe that this would keep the euro well bid in the short and medium term but on the other hand, any trend is likely to have its own set of corrections which we might see in the days to come. There are some major changes in market dynamics going on at the moment and though the uptrend is clear in this pair, the traders have to wait for the right price regions to go long.

Looking ahead to the rest of the day, we do not have any major news events from the Eurozone or the US for today but we believe that there would be consolidation and ranging in the markets today as it awaits the important ECB rate statement and press conference that is scheduled for tomorrow.