EUR/USD Current Price: 1.1429

  • Dollar out of market's favor despite Trump's truce on the border issue.
  • ECB's Draghi testified before the European Parliament, repeated the usual caveats about economic developments.

The American currency extended its decline against its European rival this Monday, unable to benefit from dominant risk aversion amid speculation that the Fed will also pause in shrinking its balance sheet. The dismal mood was triggered by a report indicating that Chinese industrial earnings shrank for a second consecutive month in December, adding to the ruling fears of an economic slowdown in the world's second-largest economy. Worldwide indexes fell, following below expected earnings reports from big names, which also blame their poor results on Chinese downturn. The EUR/USD pair rose to 1.1443, little affected by ECB's head, Draghi, testimony before the European Parliament, as he repeated the usual caveats about economic developments in the Union.  The macroeconomic calendar offered nothing of interest, with minor data both shores of the Atlantic passing unnoticed. This Tuesday, there's nothing for the EU to take care of, while, despite the US government re-opened, there's neither relevant data scheduled in the US, only the CB Consumer confidence index for January, previously at 128.1.

The EUR/USD pair trades around 1.1430 ahead of the Asian opening, offering a bullish stance in its 4 hours chart, as it not only advanced above the 50% retracement of its  January decline between 1.1569 and 1.1288 at 1.1428 but also above all of its moving averages in the mentioned chart, as technical indicators maintain firm upward slopes near overbought territory. The pair has a strong static resistance at 1.1460, while the 61.8% retracement of the mentioned decline comes at 1.1462, reinforcing the relevance of the resistance. Gains beyond it could trip stops and see the pair extending its gains up to the mentioned monthly high. The downside will remain limited as long as the price holds above 1.1380.

Support levels: 1.1380 1.1340 1.1300

Resistance levels: 1.1460 1.1490 1.1520

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more

Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News