EURUSD main trend is down according to the daily chart. However, momentum has been trending higher since the formation of the secondary higher bottom at 1.1527 on June 28. The main trend will change with a move through 1.1721. Price has printed a falling wedge formation with a possible triple bottom on major support level. We will either see more consolidation, a pullback or a break to the downside for continued downside momentum to resume.
A trade through 1.1527 will shift momentum to the downside. A move through 1.1509 will signal a resumption of the downtrend.
The main range is 1.1851 to 1.1509. Its retracement zone at 1.1680 to 1.1720 is acting like resistance. It stopped the rally earlier today at 1.1704 and on June 26 at 1.1721. Additional resistance is a longer-term 50% level at 1.1753.
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.