EUR/USD Current price: 1.1999
The EUR/USD pair managed to extend its weekly advance up to 1.2005 this Tuesday, ending the day right below the 1.2000 threshold. With the pair dangerously close to the level, news agencies hit the wires indicating that the ECB may delay decisions on QE tapering, as policymakers can't agree on when to terminate the facilities program. EUR strength was blamed for such decision, according to "people familiar with the matter." As it happened earlier this month, the ECB is trying to keep the EUR limited below the 1.2000 threshold. In the news, data came mixed from both shores of the Atlantic, as in Europe, the German ZEW survey showed that business sentiment improved beyond expected in the country, but lagged for the whole EU. In the US, housing starts slipped 0.8% to a seasonally adjusted annual rate of 1.18 million in August, although building permits surged 5.7% to a rate of 1.30 million. The US current account deficit rose to its highest level in about 9 years in Q2, widening from $113.5 billion to $123.1 billion. Major pairs are little changed daily basis, ahead of the Fed's monetary policy meeting outcome this Wednesday. Much of dollar's fate will be sealed with the announcement, as despite no rate hikes are expected, speculative interest is pricing in news on how and when the Fed will unwind its balance sheet.
The short-term picture for the pair shows little directional strength ahead of the event, which will be the main market mover this Friday. The long term bullish trend remains firm in place, as the pair remains firmly above the daily ascendant trend line coming from April's lows, currently in the 1.1820 region, a level that can be tested on an extremely hawkish surprise from Yellen & Co. Shorter term, and according to the 4 hours chart, the pair presents a neutral-to-bullish stance, as the price holds above all of its moving averages, with the 20 SMA aiming to cross above the 100 SMA, but coming from a consolidative stage around it, whilst technical indicators head nowhere, right above their mid-lines. Stops are suspected above 1.2030, the immediate resistance, with a break above it favoring an advance towards the 1.2100 level.
Support levels: 1.1950 1.1910 1.1865
Resistance levels: 1.2030 1.2065 1.2100
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.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
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.