EUR/USD Current Price: 1.0976
- FOMC Meeting’s Minutes failed to impress investors, who remain focused on trade.
- The US and China will resume trade talks in Washington this Thursday.
- EUR/USD neutral-to-bearish, break below 1.0945 exposes the yearly low.
The EUR/USD pair has spent this Wednesday trading within familiar levels, bouncing from Tuesday’s low at 1.0940 but stalling its intraday recovery ahead of the 1.1000 critical threshold. News agencies reported during European trading hours that China was open to making a partial deal with the US, despite the latest measures adopted by the US administration. The headline backed a recovery in the market’s sentiment, despite US President Trump has made it clear that he won’t go for less than a full deal. Trade talks will resume this Thursday in Washington.
There were no relevant macroeconomic releases in Europe that could affect the EUR, while in the US, only minor data was out. According to the official releases, JOLTS Job Openings in August fell to 7.051 million, the lowest reading since March, missing the market’s expectations and below the previous reading. Wholesale Inventories in the same month, however, beat expectations by rising by just 0.2%.
Repetitive Fed’s Minutes
US Fed’s head, Jerome Powell, made a speech in a Federal Reserve event, reiterating that the central bank is ready to use any tool to maintain the economy afloat, although without hinting a change in his current positive outlook of the economy. Then came the FOMC Meeting’s Minutes, which failed to impress, as the document repeated Chief’s Powell well-known message. To sum it up, risks come from abroad, chances of a recession are limited, and the economy remains overall healthy.
This Thursday, Germany will release August Trade Balance, expected to post a surplus of €18.1B, while the US will publish the final version of September inflation. The CPI is seen up by 0.1% MoM and by 1.8% YoY, while core yearly inflation is expected to remain at 2.4% as previously estimated.
EUR/USD short-term technical outlook
The EUR/USD pair has trimmed Tuesday’s losses, but lacks clear directional momentum, having been around the current levels for over a week already. In the short-term, and according to the 4 hours chart, the risk is skewed to the downside, as the pair has been unable to recover beyond the 20 and 100 SMA, both confined to a tight 10 pips range and with modest downward slopes. Additionally, technical indicators hover around their midlines, the Momentum heading south and the RSI flat, reflecting speculative interest’s lack of interest.
Support levels: 1.0945 1.0910 1.0880
Resistance levels: 1.1000 1.1045 1.1080
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.