EUR/USD analysis: dollar set to continue advancing
|EUR/USD Current price: 1.1390
- EU data in-line with the market's expectations fell short of spurring EUR demand.
- USD demand prevails despite risk sentiment back and forth.
The EUR/USD pair consolidates around the 1.1400 figure, as despite a better market mood, the common currency saw its advance limited by local macroeconomic data. German's preliminary Q2 GDP was un 0.5%, beating expectations of a 0.4% advance, although the YoY figure showed that the economy grew by less-than-expected, up 2.3% against the expected 2.5% advance. Inflation in the was up 0.3% MoM in July and by 2.0% when compared to a year earlier as expected. The Union's GDP for the same period was better-than-expected, up 0.4% from the previous and the expected 0.3%, but Industrial Production posted a larger-than-expected slump, down in June 0.7%. Finally, the ZEW survey showed that economic sentiment improved in August, although the indicators remain in negative territory and well below average. For Germany, Economic Sentiment resulted at -13.7, improving from the previous -23.7, while for the whole EU, it printed -11.1 vs. the previous -18.7.
The US released Export and Import prices for July, down monthly basis but sharply up when compared to a year earlier, having no effect on majors. In the meantime, European equities lost their early Momentum, and struggle to remain afloat, although US indexes are up ahead of the opening.
The pair hit a daily high of 1.1429 before retreating, now gaining downward traction ahead of the US opening, with scope to break to fresh yearly lows according to technical readings in the 4 hours chart, as the early advance stalled slightly below a bearish 20 SMA, while extreme oversold readings have already been corrected, with technical indicators gaining downward traction in negative territory. The dollar is up when equities are down amid risk aversion, also up when equities recover ground on positive local data. King dollar is overstretched and yet, there are no solid reasons for a change in the dominant trend.
Support levels: 1.1360 1.1330 1.1300
Resistance levels: 1.1420 1.1450 1.1485
View Live chart for the EUR/USD
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.