EUR/USD Current price: 1.1612
- Calendar to remain light until Friday, with politics likely remaining as the key market motor.
- USD back and forth movements purely linked to sentiment.
The EUR/USD pair finished the day as it started, confined to a tight range around the 1.1600 level, driven purely by the ebb and flow of the greenback´s movements, these last, directly correlated to market's mood and political headers. The USD was under selling pressure at the beginning of the day, with the pair up to 1.1627 at the beginning of the day, to fell to 1.1572. The mood turned off and on following political headers, with dollar´s intraday gains being the result of a nose-diving Pound, dominated by fears of a no-deal Brexit, later exacerbated by headlines indicating that the UK government is preparing a no-deal Brexit plan. Sentiment turned sour once the Chinese Ministry of Commerce announces a 25% retaliatory tariffs on $16 billion worth of US goods, which includes auto and crude oil. Stocks lost their initial momentum, and closed down in Europe, while US ones traded mixed, off their early highs. The greenback came under renewed selling pressure in the US afternoon, but remain within familiar levels against its European rivals.
There were no relevant macroeconomic releases, with the EU calendar empty and the US releasing MBA weekly mortgage applications, down 3.0% in the week to July 30. Fed's Richmond President Barkin hit the wires, saying that the central bank should continue rising rates and adding that concerns related to tariffs are rising. Thursday will be a bit more active in the macroeconomic front, although first-tier events won't be out until Friday. Political headlines are set to dominate markets for at least one more day.
Technically, the EUR/USD pair has little to offer, as the early rally met sellers around the daily ascendant trend line broken last week, still a relevant resistance in the 1.1620/30 price zone. The short-term picture offers a mildly positive tone, as the pair managed to hold above a directionless 20 SMA, while technical indicators advanced, the momentum at fresh August highs and the RSI at around 51. The same chart, however also shows that the 100 SMA is moving south below the 200 SMA, both in the 1.1660 region. The pair will have a more sustainable upward potential on a break above this last. Risk will turn negative on a break below 1.1550.
Support levels: 1.1585 1.1550 1.1510
Resistance levels: 1.1625 1.1660 1.1700
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.