EUR/USD Current price: 1.1103
- EU data disappointed, core inflation fell by 0.6% YoY in July.
- Germany reportedly preparing to introduce fiscal stimulus.
- EUR/USD range bound, bearish below the 1.1065 support.
The EUR/USD pair is trading marginally higher in a quiet Monday, currently hovering around the 1.1100 figure. The week kick-started with a moderated optimistic mood on the back of the latest US-China headlines, as on Friday, US President Trump said that there was “progress” in talks. There’s no much to cheer about anyway, as a solution is far from sight, and economic growth keeps deteriorating worldwide.
The EU released its Current Account data early London, which showed that the adjusted current account surplus narrowed to 18.4B euros in June from 30.3B in May. Also, July inflation was much worse-than-anticipated, down by 0.5% MoM and up by just 1.0% YoY in July. The core yearly CPI came in at -0.6% against a 0.3% advance anticipated by the market. The bad news were offset by news indicating that Germany is reportedly preparing to introduce fiscal stimulus measures as a contingency in the event of a crisis. There are no macroeconomic releases scheduled in the US today.
EUR/USD short-term technical outlook
The EUR/USD pair has completed a pullback to the 61.8% retracement of its latest daily advance at around 1.1110, still the main resistance. In the 4 hours chart, the 20 SMA keeps heading lower, a handful of pips above the mentioned Fibonacci level, while technical indicators head nowhere within negative levels. The pair is confined to a 30 pips’ range ever since the day started, and seems unlikely it will manage to achieve directional momentum through the upcoming US session.
Support levels: 1.1065 1.1025 1.0980
Resistance levels: 1.1110 1.1160 1.1195
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 fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.