The EUR/USD pair is in recovering ground in the European morning, as stocks opened higher following a bounce in commodity prices, particularly on precious metals. Overnight news helped investor's mood, as the RBA Minutes showed that the Australian Central Bank is in no rush to cut rates, keeping the dollar under pressure.
Nevertheless, major pairs remain confined to limited ranges and the EUR/USD trades a handful of pips above its Friday's close. Macroeconomic data from Europe was far from encouraging, as the EU Current Account surplus for Augusts shrunk to €17.7B, whilst July data was revised higher, from €22.6B to €25.6B. Even worse, German producer prices index in September fell by 2.1% yearly basis, compared to the previous -1.7%.
Later on, the US will release some housing data, whilst Yellen, Dudley and Powel from the FED will offer different speeches along the day.
View the Live chart of the EUR/USD
Technically, the 4 hours chart shows that the price is being limited by a strongly bearish 20 SMA, whilst the technical indicators continue recovering from near oversold levels, but remain below their mid-lines. There is an immediate short term resistance around 1.1370, although the price needs to extend beyond 1.1400 to confirm additional gains, up to 1.1460 where selling interest remains strong.
Renewed selling pressure below 1.1320 on the other hand, exposes the pair to a decline down to 1.1280 a strong static support level, which if broken, will likely see the bearish momentum accelerate, and the price run towards the 1.1240 price zone.
Latest updates on the EUR/USD Forecast
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
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%.