EUR/USD Analysis: pressure continues, 1.1106 exposed

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1152

Risk aversion weighs on the shared currency, headed to yearly lows against the greenback.
German unemployment rose in May to 5.0% adding to the sour tone of the EUR.

The EUR/USD pair extended its slide down to 1.1147 so far this Wednesday, with the pair still developing within limited intraday ranges, yet slowly but steadily losing ground. The sour tone is the result of the risk-averse ruling sentiment, with equities in the red worldwide and government bonds on the rise. Furthermore, Germany released May unemployment data, not usually a big market mover, yet given that the unemployment rate rose to 5.0% from 4.9%, investors are more willing to get rid of the shared currency.

The US also released a minor figure, MBA Mortgage Applications fell by 3.3% in the week ended May 24, with no effects on the dollar's price. Pending of release is the Richmond Fed Manufacturing Index, foreseen at 6 in May vs. the previous 3. That said, sentiment will keep leading the way for currencies.

The pair bounced from the 61.8% retracement of its latest advance, holding just above the level yet with a firmly bearish stance according to the 4 hours chart, developing well below bearish moving averages and with technical indicators retaining their downward strength at 1-week lows. The mentioned Fibonacci support comes at 1.1145, providing an immediate short-term support, with a break below it exposing the yearly low at 1.1106.

Support levels: 1.1145 1.1105 1.1070

Resistance levels: 1.1180 1.1220 1.1245

View Live chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.