EUR/USD Current Price: 1.1069
- Business Sentiment improved in the EU in September, according to the German ZEW survey.
- US Federal Reserve monetary policy´s decision taking centre stage.
- EUR/USD resumes advance on oil-related relief news, further gains not clear yet.
The FX board continued to be driven by oil-related news, with the latest headlines playing against the American Dollar, just ahead of the US Federal Reserve monetary policy decision. The EUR/USD pair bottomed for the day at 1.0989 amid persistent tensions in the Middle East, following the attack to Saudi oil facilities over the weekend. Sentiment took a turn for the better during US trading hours on a report indicating that Saudi Arabia’s oil output would return to normal levels in the next two to three weeks. Later in the day, the Saudi Oil Minister said that oil supply is fully back online. The EUR/USD pair surged to 1.1073, ending the American session not far below this last.
All eyes on the Federal Reserve
Germany released the September ZEW survey, which showed that Business Sentiment improved by more than anticipated, as the index resulted at -22.5 in the country and at -22.4 for the whole Union. However, the assessment of the current situation in Germany deteriorated further to -19.9 from -13.5 in August. US data released this Tuesday beat the market’s expectations, as Capacity Utilization rose to 77.9% in August while Industrial Production in the same month rose by 0.6%, both beating the market’s expectations.
This Wednesday, the EU will publish the final estimates of August inflation while the US will offer housing data. Nevertheless, the star of the day will be the US Federal Reserve. The central bank is expected to cut rates by 25bps and give no hints on whether it will steepen easing over the next months. Speculative interest, however, is somehow anticipating a dovish stance from Powell & Co.
EUR/USD short-term technical outlook
The EUR/USD pair has recovered nicely but remains within familiar levels. When considering the post-ECB price action, the pair has bottomed around the 61.8% retracement of the 1.0926/1.1109 advance and now stands a couple of pips above the 23.6% retracement of the same rally. In the 4 hours chart, the pair has recovered above its 20 and 100 SMA, which hover around the 38.2% retracement of the mentioned rally. Technical indicators have continued recovering but within negative levels, falling short of supporting additional gains. The pair would have more chances of extending its advance once beyond 1.1085, although the pair’s movements won’t be decisive until post-Fed.
Support levels: 1.1045 1.0980 1.0955
Resistance levels: 1.1085 1.1120 1.1160
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 holds above 1.0600 as focus shifts to Powell speech
EUR/USD fluctuates in a narrow range above 1.0600 on Tuesday as the better-than-expected Economic Sentiment data from Germany helps the Euro hold its ground. Fed Chairman Powell will speak on the policy outlook later in the day.
GBP/USD stays near 1.2450 after UK employment data
GBP/USD gains traction and trades near 1.2450 after falling toward 1.2400 earlier in the day. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, limiting Pound Sterling's upside.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
Canada CPI Preview: Inflation expected to accelerate in March, snapping two-month downtrend
The Canadian Consumer Price Index is seen gathering some upside traction in March. The BoC deems risks to the inflation outlook to be balanced. The Canadian Dollar navigates five-month lows against the US Dollar.