EUR/USD Current price: 1.1212

  • EU inflation revised modestly higher in June, still far below the ECB’s target.
  • US housing-related data missed big, dollar buyers ignore it.
  • EUR/USD could re-test yearly lows once below 1.1181.

The EUR/USD pair is trading a few pips above the 1.1200 level, having consolidated around the figure since the day started. The dollar gave back some of the ground gained Tuesday, but in the case of the common currency, speculative interest can’t find a reason to buy it, despite better-than-expected CPI. According to the official release, inflation in the Union rose by 0.2% MoM and by 1.3% YoY, slightly above the market’s forecasts, while the core readings also ticked marginally higher. However, inflation is no game-changer for the ECB, still far below the central bank’s target.

US data just released was disappointing, as Housing Starts fell by 0.9% MoM in June against the expected 1.9% advance. Building Permits in the same period fell by 6.1%, far below the forecast of a 1.6% advance.  Meanwhile, Wall Street is easing ahead of the opening, despite some robust earnings reports already published. Big names will come out through the session and is yet to be seen if those will be enough to offset trade-related concerns.

EUR/USD short-term technical outlook

The EUR/USD pair retains the bearish stance in the short-term according to what the 4 hours chart shows, developing not far above July’s low of 1.1181. The 20 SMA in the mentioned chart gained downward traction above the current level, now converging with a Fibonacci resistance around 1.1245, and below the larger ones. Technical indicators have lost their strength downward, but remain near daily lows and oversold readings.  The pair would need to break below the mentioned monthly low to gain downward traction, with the next probable target being the yearly low at 1.1106.

Support levels: 1.1180 1.1150 1.1110

Resistance levels: 1.1245 1.1280 1.1310

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 retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures