FED’s effects extend into European session, with dollar advancing strongly particularly against its European rivals: the EUR/USD trades at its daily lows in the 1.2550 price zone, unable to pick up despite a better than expected German unemployment report: the number of people without job decreased by 22K.
Having breached the 1.2610/20 price zone, the technical outlook has turned now strongly bearish, and the level will likely attract sellers if reached. Later on the day, the US will release the Advanced GDP for the third quarter, expected at 3.1%. Previous quarter was revised up to 4.6%, so a better than expected number should boost the greenback, yet a not so good one needs to be extremely disappointing, something below 2% to actually reverse latest dollar gains.
Technically, the 4 hours chart shows indicators still heading south despite in oversold territory, with 20 SMA now turning south well above current price, in the 1.2680 level. A break below 1.2550 should lead to a downward extension towards 1.2500, this year low, whilst a break below exposes 1.2440 as next probable bearish target. Price needs to advance above 1.2620 to begin an upward move, eyeing then a probable move up to 1.2660/80 area, next selling level on pullbacks.
View Live Chart for EUR/USD
Having breached the 1.2610/20 price zone, the technical outlook has turned now strongly bearish, and the level will likely attract sellers if reached. Later on the day, the US will release the Advanced GDP for the third quarter, expected at 3.1%. Previous quarter was revised up to 4.6%, so a better than expected number should boost the greenback, yet a not so good one needs to be extremely disappointing, something below 2% to actually reverse latest dollar gains.
Technically, the 4 hours chart shows indicators still heading south despite in oversold territory, with 20 SMA now turning south well above current price, in the 1.2680 level. A break below 1.2550 should lead to a downward extension towards 1.2500, this year low, whilst a break below exposes 1.2440 as next probable bearish target. Price needs to advance above 1.2620 to begin an upward move, eyeing then a probable move up to 1.2660/80 area, next selling level on pullbacks.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.