EUR/USD analysis: dollar bulls seize every chance

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1469

EUR under pressure despite Italian PM Conte saying they won't leave the eurozone.
EUR/USD heading into the Asian session near October low at 1.1431.

The American dollar gained throughout the European and American sessions, despite the flips in the market's mood. Risk appetite dominated the first half of the day, led by Chinese shares, with the Shanghai Composite up roughly 4.0%, which led to gains in its overseas counterparts. The greenback was also boosted by political concerns in the Old Continent, with Brexit and the Italian budget turmoil dominating the news. Wall Street kicked off with a strong opening, which quickly faded, although the greenback continued strengthening against most rivals. Meanwhile, concerns around Italy eased after PM Giuseppe Conte told reporters "read my lips," Italy won't leave the eurozone, despite the dispute over the budget, adding a pledged to keep 2019 deficit below the 2.4% of GDP.

The macroeconomic calendar was quite scarce, with no relevant releases in the EU and the US just offering the Chicago Fed National Activity Index for September came in at 0.17, while August reading was upwardly reviewed to 0.27 from 0.18. This Tuesday, Germany will release its September PPI, the EU will offer preliminary Consumer Confidence for October while the US will release the Richmond Fed Manufacturing Index for the same month, expected at 25 vs. the previous 29.

The EUR/USD pair neared the monthly low at 1.1430 after trading as high as 1.1549 with a markedly bearish stance according to intraday technical readings, as the 4 hours chart shows that an early attempt to advance was rejected by sellers aligned around a bearish 100 SMA, with the pair now also below the 20 SMA. Technical indicators in the mentioned chart entered bearish ground mid-European morning, holding below their midlines, and with the RSI still heading south, in line with additional slides ahead, particularly on a break below the mentioned 1.1430 level. The Momentum indicator turned modestly higher, rather following the price than suggesting the end of the downward move.

Support levels: 1.1430 1.1400 1.1365

Resistance levels: 1.1490 1.1525 1.1575

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.