EUR/USD Current price: 1.1847
The EUR/USD pair came under selling pressure on Thursday, on a mix of US positive data and a change in ECB head's Draghi rhetoric. The greenback started the day with a soft tone, amid insipid Fed's meeting Minutes released late Wednesday, but started grinding higher after the European opening, gaining modest traction on better-than-expected US data. US producer prices rose in September, up by 0.4% in the month, matching market's expectations, and by 2.6% when compared to September 2016, beating expectations of 2.5%. The core readings also beat market's forecasts. Weekly unemployment claims were of 234K for the week ended October 6th, better than the 251K expected, while previous week's number was downwardly revised to 258K. As for the common currency, comments from ECB's head Draghi who speaking in Washington DC said that policymakers expect rates to remain at their present levels for "an extended period of time, and well past the horizon of our net asset purchases."
A relevant news that passed unnoticed by USD traders was the fact that US President, Donald Trump signed an executive order directing federal agencies to consider expanding health-insurance coverage in low-cost plans that are not subject to Affordable Care Act rules, as he hasn't been unable to pass the Obamacare reject-bill through the Congress. While this executive order is not exactly the same, is a first step in the chosen direction. This Friday, the US will release September Retail Sales and Inflation figures, these last higher yearly basis, but not for much.
The EUR/USD pair fell down to 1.1826, bouncing modestly from the level, but holding nearby ahead of the Asian opening, overall poised to extend its decline in the short-term, moreover if the price manages to break below the key support in the 1.1820/30 region. The level has proved strong in the past, while it also stands for the 23.6% retracement of this month's rally. The 4 hours chart shows that technical indicators keep retreating from overbought levels, still in positive territory, while a bullish 20 SMA extends above the 100 SMA below the current level, a sign that the ongoing decline could be just corrective. The 38.2% retracement of the mentioned rally comes at 1.1795, the level to break to confirm additional declines ahead.
Support levels: 1.1825 1.1795 1.1760
Resistance levels: 1.1890 1.1930 1.1965
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
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.