FX.co ★ XAU/USD, GOLD

EUR/USD Analysis EUR/USD struggled to profit from an overnight rally from the 1.0380 region or weekly lows, trading in a narrow range during Thursday's Asian session as traders chose to wait and watch ahead of the European Central Bank (ECB) meeting. Because of the euro zone's slow economic growth and consistently low inflation, the European Central Bank is anticipated to lower borrowing costs for the fifth consecutive meeting. Due to worries about the possible financial effects of the trade tariffs that the United States has threatened, markets are already factoring in the prospect of three additional rate cuts before the year is out. Donald Trump in the US. Despite a slight rise in the value of the US dollar (USD), this is seen as negative for the euro and the EUR/USD pair. The US central bank said at the end of its two-day meeting on Wednesday that it will not rush to cut borrowing costs until inflation and employment data are more appropriate, despite Trump’s calls for interest rate cuts. The dollar benefited from the Fed’s hawkish pause, further capping the EUR/USD gains. However, a fresh wave of cuts in US Treasury yields capped the dollar and helped the pair ahead of important events related to central bank concerns.

The 4-hour Relative Strength Index (RSI) is trading slightly sideways below 50, indicating that the near-term technical outlook is unable to offer any directional signals. Up to 1.0380-1.0390 (200-period SMA, 50% Fibonacci retracement level of the last decline), initial support levels on the downside will be 1.0340-1.0350 (38.2% Fibonacci retracement level, 100-period SMA) and 1.0300 (static level, round number). The next resistance levels could be 1.0540 (static level) and 1.0600 (start of decline) ahead of 1.0500-1.0510 (round number, 78.6% Fibonacci retracement level) if EUR/USD stabilizes above 1.0440 (61.8% Fibonacci retracement level).