EUR/USD analysis: dollar surges on run to safety

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1342

Plummeting US Treasury yields and equities spurred demand for the greenback.
EUR may suffer from growth data this Wednesday.

The EUR/USD pair traded as high as 1.1418 this Tuesday, although once again, it was unable to hold on to gains above the 1.1400 mark, turning negative for the day in US trading hours. The positive momentum in high-yielding assets triggered by weekend news related to the trade war was faded throughout the day, with most major indexes closing in the red. And that came after US President Trump's confident tweet about trade talks going underway. US Treasury yields eased from their highs, despite Fed's speakers sounded more confident than the gloomy chief Powell, as Williams said that he sees further gradual hikes over "the next year or so," adding that the Fed could change forward guidance but that the dot-plot will remain. Softening yields were behind Wall Street's fall, amid renewed concerns of a yield-curve inversion, a sign of economic slowdown. Contradictory that fears of a US slowdown end up strengthening the greenback.

The macroeconomic calendar didn't provide clues, as only minor data was out. The EU released October PPI, which rose by 0.8% when compared to the previous month and by 4.9% from a year earlier, while the US informed the ISM-NY Business Conditions Index, down to 67.8 from the previous 69.8, and the IBD/TIPP Economic Optimism Index, also disappointing, down to 52.6 vs. the previous 56.5. This Wednesday will bring the final November Markit Services and Composite indexes for both economies and EU October Retail Sales.

The EUR/USD pair fell to 1.1317 bouncing just modestly from the level to stabilize around the 1.1330 price zone. The failed attempt to advance beyond the 1.1420/30 region is quite discouraging for bulls, which may give up on a break below the 1.1300/10 price zone. Meanwhile, and heading into the Asian opening, the pair is bearish short-term, given that in the 4 hours chart, it has broken below all of its moving averages with a large candle indicating strong downward momentum, as technical indicators resumed their slides within negative levels, now at fresh daily lows.

Support levels: 1.1315 1.1290 1.1260

Resistance levels: 1.1365 1.1400 1.1430

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.

EUR/USD loses traction, breaks below 1.1900

EUR/USD comes under extra downside pressure, breaching below the 1.1900 support once again on Tuesday. The improved tone in the US Dollar keeps the pair on the back foot after two consecutive daily advances. In the meantime, prudence is expected to kick in ahead of the release of the key US Nonfarm Payrolls on Wednesday.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.