EUR/USD Current Price: 1.1099
- The market’s attention shifts toward the FOMC Minutes and the Jackson Hole Symposium.
- Italian political turmoil and fears of a German recession weigh on the EUR.
- EUR/USD bounced from a relevant static support, remains in the bearish path.
The EUR/USD pair came under selling pressure throughout the first half of the day, weighed by Monday’s news related to raising odds for a recession in Germany, and political turmoil in Italy, as Deputy PM, Matteo Salvini, said that a 50B euro budget is necessary in 2020 to bring about a “shock” fiscal stimulus program, while PM Conte resigned after Salvini broke their coalition government and called for an election. Salvini, later declared that he is willing to stay in the government to approve the budget. Meanwhile, the greenback benefited from Fed’s Rosengren words, who cooled down speculation of further rate cuts in the US. During US trading hours, the pair managed to bounce from a daily low at 1.1065, as dollar’s rally lost steam once reaching the critical level. The macroeconomic calendar remained scarce, with unimpressive figures coming from the EU, as German’s July PPI was up by 0.1% MoM and by 1.1% YoY, meeting the market’s expectations, while the EU Construction Output in June was up by 1.0% YoY, following a 2.0% advance in the previous month.
This Wednesday, there won’t be macroeconomic releases coming from the EU, while the US will release July Existing Home Sales and more relevant, the Minutes of the latest FOMC Meeting. The market will be looking for any hint about the future of monetary policy, with one more rate cut in the docket for this year. Later this week, the Jackson Hole Symposium will take place, with the heads of the most relevant central banks offering speeches.
EUR/USD short-term technical outlook
The EUR/USD pair is trading around the 1.1100 figure, flat weekly basis. The recovery fell short of changing the dominant bearish trend, as the pair remains below the 61.8% retracement of its latest bullish run at 1.1110. Furthermore, it set a lower low and a lower high daily basis. In the short term, and according to the 4 hours chart, the pair is currently advancing above a bearish 20 SMA, which kept sliding below the larger ones. Technical indicators have bounced, the Momentum advancing above its 100 line and the RSI at 48, indicating a limited bullish potential. The advance could gain pace if the pair breaks above the mentioned Fibonacci resistance.
Support levels: 1.1065 1.1025 1.0980
Resistance levels: 1.1110 1.1150 1.1195
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
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.