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
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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.