EUR/USD Analysis: downside limited by critical 1.1000 figure

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1027

Risk-related sentiment continues to dominate the FX board.
A scarce macroeconomic calendar keeps most major pairs within familiar levels.
EUR/USD technically neutral, waiting for fresh trade-related headlines.

The EUR/USD pair gapped lower at the weekly opening, although it held above the 1.1000 figure. Weekend news have affected the market’s sentiment negatively, with the greenback and safe-haven assets making the most out of it.

The US and China have set an agreement in principle by the end of last week, with US President Trump calling it “phase 1” of a trade deal. The announcement initially triggered the market’s optimism, which later faded on the back of the lack of details and uncertainty on which tariffs are still on the table and when those will be applied. Also, Brexit-related news weighed on the market’s mood, after UK PM Boris Johnson said during the weekend that there’s still a long way to go toward a deal.

The EU released August Industrial Production, which was up by 0.4% when compared to the previous month, although down by 2.8% when compared to a year earlier. The US celebrates Columbus Day, and no macroeconomic data will be released.

EUR/USD short-term technical outlook

The EUR/USD pair is trading in a tight range far from indicating additional declines ahead in its 4 hours chart, as, despite technical indicators continue to ease from overbought readings, the price holds above all of its moving averages, and with the 20 SMA maintaining its bullish slope after crossing above the larger ones. The downside is limited by the 1.1000 psychological threshold, while the pair could turn bullish on an extension beyond 1.1045.

Support levels: 1.1000 1.0960 1.0920

Resistance levels: 1.1045 1.1080 1.1120

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 treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

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

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

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.