EUR/USD Current Price: 1.1090

  • Mounting speculation the ECB will announce a large pack of stimulus weighs on the EUR.
  • US Commerce Department to extend Huawei’s temporary general license.
  • EUR/USD capped by a Fibonacci resistance at 1.1110, yearly low at risk.

The shared currency has remained under selling pressure on Friday, amid mounting speculation the ECB will announce a larger-than-anticipated stimulus package next September. Despite the market’s mood improved and that US data was generally disappointing, the EUR/USD pair finished the week below 1.1100. In June, Housing Starts fell by 4.0%, missing the market’s forecast of -1.7%, although Building Permits rose by 8.4%. The Michigan Consumer Sentiment Index fell to 92.1 in August, according to preliminary estimates, from 98.4 in July.  Meanwhile, equities bounced while US government debt yields recovered modestly, as US President Trump spoke about progress in US-China trade talks, pouring some cold water on the issue. During the weekend, news suggested that the US Commerce Department may extend for 90 days the temporary general license given to Huawei so that it can continue serving existing customers. If the news is confirmed, the positive mood would likely prevail. This Monday, the EU will release July inflation, seen down by 0.4% MoM and steady at 1.1% YoY, and June Current Account, while the US won’t release relevant data.

 EUR/USD short-term technical outlook

The EUR/USD pair has fallen for four consecutive days, settling below the 61.8% retracement of its latest daily advance at around 1.1110, now the immediate resistance. In the daily chart, the 20 DMA, offers a strong downward slope below the 38.2% retracement of the same rally and below the larger ones, while technical indicators maintain bearish slopes within negative levels, all of which skews the risk to the downside. In the 4 hours chart, technical readings also favor a bearish extension, as, after falling to 1.1066, the pair recovered to met sellers around the mentioned Fibonacci resistance. The 20 SMA has crossed below the larger ones, while technical indicators have barely bounced from oversold readings before losing their strength upward.

Support levels: 1.1065 1.1025 1.0980

Resistance levels: 1.1110 1.1160 1.1195  

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 holds above 1.10 post-hawkish Fed cut

EUR/USD manages to hold above the1.10 after the Fed cut rates but signaled no further rate reductions. The bank acknowledged the strong labor market and robust consumption. However, it is worried about investment.


GBP/USD: Rising wedge at the top inflates downside risk

GBP/USD portrays a short-term rising wedge bearish formation while trading near 1.2475 during the Asian session on Thursday. One-week-old rising wedge surrounding monthly tops questions buyers.


USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 


Bitcoin dives below $10,000

Bitcoin has lost its cool towards the end of the Asian session on Thursday. After managing to defend $10,000 over the last few days, the granddaddy of cryptos has plunged below several other support areas including $9,900 and $9,800. 

Read more

Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Forex Majors