EUR/USD Current price: 1.1463
- Dollar strengthens on safe-haven demand as worldwide equities plunged.
- EUR/USD faltered at key Fibonacci resistance, bears taking over the pair.
The common currency remained under pressure throughout Thursday, with the EUR/USD pair falling to a fresh weekly low of 1.1451. A short-lived attempt to recover ground at the beginning of the London session was capped by selling interest around a Fibonacci resistance level, a sign of resurgent dollar's demand. Such advance was backed by a positive opening of European equities and an uptick in US Treasury yields. Stocks and yields, however, turned south after the American opening, with mounting concerns about slowing global economy after the Chinese stock market collapsed overnight. There were minor macroeconomic releases both shores of the Atlantic that had little effects on the pair, with a modest increase in the German's Wholesale Price Index in September, and the October US Philadelphia Fed Manufacturing Survey, which came in at 22.2, beating the market's estimates of 20.0. The pair made a second attempt to break above 1.1520 on comments from ECB's Draghi, who repeated his optimistic outlook of the local economy, but sellers pushed the price back lower.
This Friday, the EU will only offer the August Current Account, while the US will release Existing Home Sales data for September, while a couple of FOMC's members will hit the wires, nothing that can affect sentiment-related trading.
The pair trades at its lowest in over a week, and with a strong downward momentum according to technical readings in the 4 hours chart, as the price is further below sharply bearish 20 and 100 SMA, both still converging above the current level, as technical indicators resumed their slides now nearing oversold readings. Given the repeated failure to surpass the 1.1520 area, the 23.6% retracement of its latest daily decline, the pair has now room to extend its decline to 1.1430, the base of the mentioned decline.
Support levels: 1.1430 1.1400 1.1365
Resistance levels: 1.1490 1.1520 1.1575
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. 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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.