S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- EUR/USD weakens to near 1.1500 in Friday’s early European session.
- The pair keeps a bearish vibe in the near term under the 100-day SMA.
- The first upside barrier emerges at 1.1510; the initial support level is seen at 1.1425.
The EUR/USD pair trades in negative territory around 1.1500 during the early European trading hours on Friday. The Euro (EUR) softens against the US Dollar (USD) as escalating tensions in the Middle East weigh on riskier assets.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said on Thursday that the United States (US) will pay the price for killing Iranian civilians, per the Guardian. The Islamic Revolutionary Guard Corps (IRGC) said on Thursday that it targeted US bases in Kuwait, Jordan and Bahrain after US forces bombed a building on Iran’s Qeshm Island. The Iranian military added that the Strait of Hormuz would remain closed and that the “aggressor will be punished.”
Stronger-than-expected Gross Domestic Product (GDP) data from the Eurozone and Germany have reinforced expectations that the European Central Bank (ECB) could deliver a second interest rate hike this year, potentially as soon as September. This, in turn, might help limit the shared currency’s losses in the near term.
Eurozone recovery underpins expectations for September ECB hike
Brown Brothers Harriman’s Elias Haddad underscores that the recent improvement in Eurozone data is strengthening the policy case for further tightening. He notes that “the recovery in Eurozone economic activity and above target inflation reinforces the case for the ECB to resume raising rates in September,” suggesting that the combination of firmer growth and persistent price pressures keeps the central bank on track for another move after its current pause.
Technical Analysis: EUR/USD maintains negative outlook under 100-day SMA
In the daily chart, EUR/USD remains capped in the near term, as spot holds below the 100-day simple moving average (SMA) and presses against the upper Bollinger Band, suggesting upside attempts are meeting supply. The Bollinger midline underpins the structure, while the Relative Strength Index (RSI) at about 59 hints at improving but not yet overbought momentum within an overall constrained backdrop.
On the topside, immediate resistance is aligned at the upper Bollinger Band around 1.1510, with the 100-day SMA at 1.1570 acting as the next significant barrier that bulls would need to reclaim to ease the broader bearish cap.
On the downside, initial support is seen at the daily mid-Bollinger band near 1.1425, ahead of the lower Bollinger Band around 1.1340, where a break would likely reinforce downside pressure and reopen the path toward lower lows.
