European Parliament Approves ECB's Digital Euro Project

The parliamentary approval of the digital euro project is a long-term structural development and is not expected to directly impact short-term market dynamics. As the news does not signal a change in monetary policy stance, it does not alter interest rate or liquidity expectations. In the short term, it is unlikely to generate significant directional movement in the markets.

The EURTRY pair is displaying a technically weak outlook. Although the RSI is approaching oversold territory at 35, the MACD remains below its signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, confirming a short-term bearish trend. The news headline suggests that approval of the digital euro project could strengthen the euro and indirectly weigh on EURTRY. However, due to the oversold RSI and low volatility, the downside may be limited.

EURUSD is trading below both the 20-day and 50-day moving averages, even as the RSI approaches oversold territory at 31.4. The MACD line remains below the signal line and in negative territory, indicating sustained short-term bearish momentum. While the news of progress on the digital euro project is a positive development, it is viewed as a long-term structural change rather than a near-term support for the euro. Weakness in technical indicators and a 0.34% decline over the past 24 hours suggest continued selling pressure. Therefore, the likelihood of further downside movement in the short term remains elevated.