Against the background of the expected decision of the European Central Bank on the interest rate, the EUR/USD pair is being adjusted, trading around the 1.1769 mark
EUR/USD euro dollar forecast and signals for July 26-27, 2021
As experts predicted, the regulator has kept all the parameters of monetary policy at the same levels. The interest rate on deposits remains at -0.50%, the rate on margin loans is at 0.25%, and the key rate is at 0.00%. The volume of PEPP's emergency asset repurchase program will also maintain the volume of 1.85 trillion euros, and asset repurchase will continue at an increased pace in the current quarter. The head of the department, Christine Lagarde, announced that the bank does not see any prospects for fixing the inflation rate above the target level of 2.0% in the near future, as the coronavirus pandemic continues to cloud the prospects for economic recovery.
The US currency could not take advantage of the slowdown in the euro and itself fell slightly after the Ministry of Labor published a disappointing report, according to which the number of initial applications for unemployment benefits increased to 419 thousand from 368 thousand a week earlier, which is significantly higher than the forecast of 350 thousand applications.
Support and resistance levels
On the global chart, the price decreases as part of the development of the global "Head and shoulders" pattern.
Technical indicators maintain a stable sell signal: the fast EMA on the Alligator indicator are below the signal one, and the histogram of the AO oscillator is trading deep in the sales zone, forming bars with a tendency to increase.
Resistance levels: 1.1845, 1.2000.
Support levels: 1.1715, 1.1620.
Trading Scenarios
Thus, EUR/USD forecast of the euro dollar for July 26-27, 2021, if the asset continues to decline, as well as fixing below the local support at 1.1715, it is possible to open sell positions with a target of 1.1620. The stop loss should be set at 1.1760. Implementation period: 7 days or more.
In the event of a reversal and growth of the asset, as well as consolidation above the local resistance at 1.1845, buy positions with a target around the 1.2000 mark will become relevant. The stop loss should be placed around the 1.1800 mark.