EUR/USD Current price: 1.1598

  • USD hit by escalating trade-war, US Supreme Court ruling on taxes.
  • EUR weak on plummeting consumer confidence, Italian political woes.

The EUR/USD pair reached a fresh yearly low, hitting 1.1507 early Europe as an escalating trade war that triggered retaliation from several major economies fuel risk aversion in detriment of the EUR. Adding pressure on the common currency, Italy appointed Alberto Bagnai as Senate Finance Committee head, a well known eurosceptic. The pair began bouncing after the BOE's hawkish surprise that open doors for a rate hike next August, with the recovery later fueled by soft US data, and a decision of the US Supreme Court that allows states to require online-sales tax collection.

Equities plunged in Europe and the US after news indicating that following Wednesday's EU decision to impose tariffs on US imports as soon as this Friday, the Turkish government joined the retaliation train by imposing tariffs of $266.5 million on $1.1 billion worth of US goods. In the US, weekly unemployment claims resulted at 218K for the week ended June 15 better than the 220K expected, although the Philadelphia Fed Manufacturing Survey came in at 19.9 for June, well below the previous 34.4 or the expected 29.0. Euro's rally stalled after the Union's June preliminary consumer confidence plunged to -0.5, its lowest since last October. June preliminary Markit PMI for the EU and the US will be out this Friday, helping to finish the week on a high note.

Technically, the pair is not yet out of the woods despite the latest recovery to the current 1.1600 region, but the fact that it bounced strongly from the yearly low may suggest that the upward corrective movement could continue, exacerbated by profit-taking ahead of the weekend. In the 4 hour chart, the pair settled above a horizontal 20 SMA, some 20 pips above the indicator for the first time in almost two weeks. Technical indicators in the mentioned chart have entered positive territory, maintaining their upward momentum, with the RSI partially losing its upward strength but at around 55, indicating persistent buying interest. The weekly high at 1.1644 is the key resistance level to surpass to favor an upward continuation during the upcoming session up to 1.1720, a Fibonacci resistance.

Support levels: 1.1550 1.1510 1.1460

Resistance levels: 1.1645 1.1680 1.1720

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. 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

Recommended Content

Editors’ Picks

EUR/USD fluctuates near 1.0850 as markets assess Fed commentary

EUR/USD fluctuates near 1.0850 as markets assess Fed commentary

EUR/USD trades in a tight range at around 1.0850 on Tuesday. In the absence of high-tier data releases, the cautious market mood helps the USD hold its ground and limits the pair's upside. Meanwhile, investors continue to scrutinize comments from central bank officials.


GBP/USD stays in positive territory above 1.2700, awaits fresh catalysts

GBP/USD stays in positive territory above 1.2700, awaits fresh catalysts

GBP/USD struggles to stretch higher above 1.2700 on Tuesday as the mixed action in Wall Street supports the USD. Investors await fresh catalysts, with several Fed officials and BoE Governor Bailey set to speak later in the session. 


Gold steadies around $2,420 ahead of FOMC Minutes

Gold steadies around $2,420 ahead of FOMC Minutes

Gold gained traction and climbed to $2,430 area in the American session, turning positive on the day. The pullback in the benchmark 10-year US Treasury bond yield helps XAU/USD stage a rebound following the sharp retreat seen from the all-time high set at the weekly opening at $2,450.

Gold News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

Read more

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out

Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.

Read more