The euro continues losing value. However, yesterday, even a minor reason was enough to cause a confident rise in the single currency. What is shaping traders’ sentiment today?
Curiously, the euro started losing value when there was no information that could have spurred any changes in the market. The US dollar remains extremely overbought. At present, it is hardly possible to make any accurate forecasts. However, it is obvious that to launch a correction, the US dollar needs macroeconomic reports or announcements from monetary authorities.
Today, a lot of officials of the European Central Bank will deliver speeches. It is quite possible that they will drop hints about the meeting scheduled for the next week. The comments will be very important as traders could make some conclusions about a further rise in the key rate. Against the backdrop, the euro will have a chance to recoup all its yesterday losses.

On the trading chart, we see that the euro dropped against the US dollar. Notably, the euro has already slid by about 450 pips from the high of the mid-term uptrend.
If speculators continue to ignore technical signals of the greenback’s overbought conditions, the downward correction of the euro will continue. However, the magnitude of the euro’s depreciation points to the fact that sellers may soon lose control of the market. If technical signals are not ignored, the pair may show short-term stagnation.

Although the pound sterling jumped from the support level of 1.2350, it did not show any considerable changes. The recent recovery was negatively affected by sellers. As a result, the British pound resumed falling.
If the quote returns to 1.2350, the decline may accelerate. In the event of this, the pair may break the support level and the correction from the high of the mid-term uptrend will continue. Traders will consider an upward scenario if the price consolidates above 1.2450, allowing the pair to climb higher. However, traders should keep in mind that various factors affect the market. That is why the real price movement depends on the combination of these factors and future events.


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00:00 INTRO
00:14 QUOTES
00:41 ECB KEY INTEREST RATE:
01:10 EUR/USD
01:52 GBP/USD