EUR/USD Current price: 1.1590

  • The American currency continues losing ground post-FOMC's Minutes, on escalating concerns about trade war effects on the economy.
  • Preliminary August Markit PMI for the Union and the US to be out this Thursday.

The FX board continued gyrating around the US President Trump, with the greenback depreciating sharply mid-European session, on headers indicating that his former lawyer, Michael Cohen has details of a Russian conspiracy to manipulate elections. While hardly likely to occur, the word "impeachment" began sounding out loud again. The news pushed the EUR/USD up to 1.1622, a major static resistance level that the pair was unable to surpass. The macroeconomic calendar didn't offer much, as there were no releases in the EU, while the US released July Existing Home Sales figures, which by the way, disappointed by falling 0.7% vs. an expected advance of 0.6%. FOMC Meeting's Minutes hinted a September rate hike, but added a dovish note, as concerns over how trade disputes could disrupt growth have increased. Fears that escalating tensions could prevent the Fed from hiking again after September, sent the USD marginally lower against all of its rivals.

In the meantime, US and Chinese officials began talks in Washington. This Thursday, the latest $16 billion worth of tariffs on Chinese imports will go into effect and could trigger a quick response from the Asian country, resulting in a run to safety. Also Thursday, the macroeconomic calendar will finally have something to offer, with preliminary August Markit PMI for both economies, ECB's Minutes, and EU preliminary Consumer Confidence, among others.

The prevalent dollar's weakness left the EUR/USD pair above the 61.8% retracement of its August monthly slide, at 1.1545,  the immediate support. Technical readings in the 4 hours chart suggest that the pair could continue advancing, as technical indicators barely lost directional strength in extreme overbought territory, while the pair keeps developing well above its 20 and 100 SMA, with the shortest about to cross the larger one and both around 1.1500/10. Despite attempting to break above it, the pair was unable to surpass a bearish 200 SMA. The 1.1620 area is a key static resistance, and a break above it should lead to a test of the monthly high at 1.1699. 

Support levels: 1.1545 1.1510 1.1480

Resistance levels: 1.1620 1.1660 1.1700

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

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/USD dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

Cryptos: Market ready to launch, not knowing who will lead it

The market hesitates between Bitcoin and Ethereum to lead the next bullish run. Ethereum will suffer heavy losses if not in command. Bullish clarity may call for terminal motivation bearish jerks.

Read more

Gold bulls hold in there on geopolitical and trade risks, despite robust USD

Gold prices were under pressure at the start of the week as the US dollar seeks correction of the latest slide following a very healthy headline accumulative number in US jobs creation which included strong revisions.

Gold News

USD/JPY: Bears losing their grip as market attempts to bottom

USD/JPY is trading on the bid in the US session following a rise from 108.42 the low to a high of 108.66.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures