EUR/USD Current Price: 1.1173

  • German and EU business sentiment plummeted in August.
  • Growth in the Union in the second quarter to take centre stage.
  • EUR/USD at risk of extending its decline on a break below 1.1160.

Risk aversion has dominated the first two sessions of the day, suddenly flipping to quite a positive mood just ahead of the US opening. The U-turn in sentiment came after the US Trade Representative,  Lighthizer crossed the wires announcing that additional tariffs on some Chinese imports, will be delayed until December 15. US President Trump later said that the decision was taken to prevent an impact on the Christmas shopping season.  Anyway, the headline was enough to take Wall Street out of the red for the week, with the three major US indexes posting robust gains.

Earlier in the day, Germany released the August ZEW survey, which showed that mood among European investors continued deteriorating. The German Economic Sentiment Index plunged to -44.1, the lowest since December 2011, while for the Union, the index plummeted to -43.6, both much worse than anticipated. German final July inflation matched the market’s expectations. In the US, on the contrary, July inflation was upwardly revised to 1.8% YoY. Core yearly inflation came in at 2.2%, making the pair retreat from a daily high of 1.1228, although it only broke below 1.1200 with the trade-related headline.

This Wednesday, Germany will release the preliminary estimate of Q2 GDP, foreseen at -0.1% from a previous 0.4%. The EU will also publish the preliminary estimate of growth in the second quarter, expected at 0.2%, matching Q1 reading. The US macroeconomic calendar will only offer minor data, irrelevant in terms of price action.

EUR/USD short-term technical outlook

The EUR/USD pair is trading near its Monday low at 1.1161 ahead of the Asian opening, with the short-term picture now favoring a downward extension, particularly on a break below the mentioned daily low, as it will also imply a break below a key Fibonacci support, the 38.2% retracement of the latest bullish run. In the 4 hours chart, the pair faltered once again around a mild-bearish 200 SMA, while the 100 SMA converges with the mentioned Fibonacci support, reinforcing it. Technical indicators turned south, entering negative territory, although they are still within neutral levels, skewing the risk to the downside without confirming it at the time being.

Support levels: 1.1160 1.1125 1.1080

Resistance levels: 1.1220 1.1250 1.1285

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 trades around 1.1100 amid the Italian crisis, ahead of Fed minutes

EUR/USD is trading around 1.1100, in familiar ranges. Italian President Mattarella will explore if a new government can be formed after PM Conte resigned. The FOMC Minutes are eyed later in the day.


GBP/USD leans lower ahead of the Johnson-Merkel meeting

GBP/USD is trading below 1.2150, losing some ground. UK PM Johnson will meet German Chancellor Merkel in Berlin after the latter called for finding practical solutions on the Irish backstop.


USD/JPY: Bulls re-take 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 


Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Critical technical levels cryptos need to overcome after the summer slide

Late August is vacation time in the northern hemisphere – and cryptocurrency bulls may be at the beach as well. Tuesday's slide in prices lacks clear triggers and perhaps shows some fatigue or profit-taking.

Read more

Gold slips below $1500 mark amid improving risk sentiment

Gold edged lower through the early European session on Wednesday and is currently placed at the lower end of its weekly trading range, just below the key $1500 psychological mark.

Gold News