EUR/USD Current price: 1.0738
The EUR/USD pair retreated on Friday from a fresh 1-month high of 1.0782, but settled well above the 1.0700 threshold, as broad dollar's weakness dominated the FX board, following Fed's monetary policy meeting. The US Central Bank hiked rates as largely anticipated, but retain the stance of a slow pace for upcoming hikes, being far more conservative than expected. At the same time, other major Central Banks' policymakers, hinted the possibility of retrieving their facilities, further fueling dollar's easing. The BOE's meeting showed one MPC member voted to hike rates, whilst ECB's Nowotny said that the Government Council talked about the possibility of rising rates.
Over the weekend, the G-20 meeting ended with world leaders dropping a decade-long pledge to reject protectionism, unable to find common ground with the new US administration, replacing it with a light commitment to work on strengthening "the contribution of trade to our economies." This outcome will likely weigh on the USD, as it indicates Trump's desire for a weaker greenback. The week will likely start in slow motion, as the calendar is quite light in Europe and the US, until Wednesday.
After rallying for three weeks in-a-row, the daily chart for the EUR/USD shows that the pair settled above its 20 and 100 DMAs, both around 1.0610, but still below a 200 DMA, at 1.0856. It also shows that technical indicators have lost upward strength and began retreating from near overbought territory, but are far from suggesting a downward move, whilst the price stands above the 38.2% retracement of the post-US election slide at 1.0710. In the shorter term and according to the 4 hours chart, technical indicators are also retreating from overbought readings, but holding well above their mid-lines and with limited bearish strength, whilst the 20 SMA maintains a strong upward slope, converging with the mentioned Fibonacci support. Overall, the bullish potential eased, but there are no signs the pair has topped, and an extension beyond the mentioned high will likely result in further gains for the pair.
Support levels: 1.0710 1.0660 1.0635
Resistance levels: 1.0755 1.0790 1.0820
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 to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades slightly near 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range below $2,320
After retreating to the $2,310 area early Wednesday, Gold regained its traction and rose toward $2,320. Hawkish tone of Fed policymakers help the US Treasury bond yields edge higher and make it difficult for XAU/USD to gather bullish momentum.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.