EUR/USD rejected at falling trendline, focus on Eurozone PMIs and Italian 10-yr yield
|- The EUR failed to take out a key falling trendline yesterday as the Fed signaled readiness to hike rates in September.
- The common currency could take a beating if the PMI's, due today, print below estimates and the 10-year Italian yield spikes.
The EUR/USD fell to 1.1550 in Asia, having faced rejection at the trendline sloping downwards from the April 19 high and July 31 high.
The Fed minutes released yesterday showed the policy makers are poised to continue gradually raising interest rates, meaning the rate differential is set to widen further in the USD-positive manner in the near future. As a result, the greenback picked up a bid in early Asia.
Looking ahead, the EUR/USD could extend the decline to 1.15 if the German and Eurozone PMIs, scheduled for release today, show the trade war is having a negative impact on the Eurozone economy.
The EUR traders should also keep an eye on the Italian government borrowing costs. The 10-year Italian government bond yield created a bullish outside-day candle yesterday and hence looks set to rise in the EUR-negative manner.
EUR/USD Technical Levels
Resistance: 1.1577 (61.8% Fib R of 1.1747/1.1301), 1.1610 (50-day moving average), 1.1628 (Aug. 8 high)
Support: 1.1527 (5-day moving average), 1.1508 (June 21 low), 1.1497 (100-hour moving average)
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.