EUR/USD Current price: 1.1217

  • ECB said to be considering revamping its inflation target.
  • US minor data came in above the market’s expectations.
  • EUR/USD en route to break July’s low of 1.1181, scope then to test 1.1106.

The EUR/USD pair peaked at 1.1243 amid broad dollar’s weakness dominating the FX board during the first half of the day, suddenly collapsing to 1.1204 mid-London session. Such decline was the result of headlines indicating that ECB’s members are considering revamping the central bank’s inflation target of “below, but close to 2.0%.” Prevalent dollar’s weakness helped the pair to bounce to the 1.1220 price zone, ahead of the release of US data.

According to the official release, Initial Jobless Claims for the week ended July 12 met the market’s expectations by printing 216K, while the Philadelphia Fed Manufacturing Survey resulted upbeat in July, reaching 21.8, well above the expected 5.0 and the previous 0.3. Data gave the greenback a boost against its weakened European rival. Later in the day, Fed’s Bostic and Fed’s Williams will speak in separated events.

EUR/USD short-term technical outlook

The EUR/USD pair retreated from the 23.6% retracement of its daily decline measured between 1.1411 and 1.1181 at 1.1245, after a couple of failed attempts to surpass the 38.2% retracement of the same slump earlier this week, which maintains the risk skewed to the downside.  The 4 hours chart indicates that bears hold tight to the driver’s seat, as the pair briefly surpassed a firmly bearish 20 SMA now developing below it, while the 100 SMA is crossing below the 200 SMA, both converging with the 38.2% retracement of the mentioned slide at around 1.1280. Technical indicators in the mentioned chart resumed their declines after nearing their mid-lines, supporting further declines ahead, particularly if the pair breaks below 1.1181, this month low.

Support levels: 1.1180 1.1150 1.1110

Resistance levels: 1.1245 1.1280 1.1310

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 holding onto gains amid trade wars, ahead of German IFO

EUR/USD is trading around 1.1150, consolidating its gains after the escalation in US-Sino trade wars sent US yields and the greenback lower. German IFO Business Climate is next.


GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.


USD/JPY recovers farther from multi-year lows on Trump’s positive trade-related comments

The incoming positive trade-related comments dented the JPY’s safe-haven demand. Improving global risk sentiment helped the pair to recover around 150-pips intraday. Investors now look forward to the US durable goods orders data for a fresh impetus.


Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more

Gold: Risk-off rally stalls after US, China aim to calm trade war fears

Having surged to the fresh high since April 2013, Gold declines to the intra-day low of $1,538.50, before taking rounds to $1541.60, by the press time of early Monday. China shows readiness to have a calm discussion with the US.

Gold News