EUR/USD continues to struggle amid US inflation concerns

Andrey Goilov RoboForex

EUR/USD is on a downward trajectory on Friday, hovering around 1.0686 after a short-lived pause. The dollar experienced a temporary dip due to mixed American economic indicators and market anticipation ahead of the critical Core PCE inflation report, a significant factor in Federal Reserve decision-making.

Yesterday's data showed a larger-than-expected decrease in US unemployment claims and a modest rise in Durable Goods Orders for May, although Core PCE dipped. The final GDP figures for Q1 2024 were slightly adjusted upward, showing the US economy grew by 1.4% compared to the previously estimated 1.3%, in contrast to the 3.4% growth seen in Q4 2023.

US Treasury yields also saw a minor decline, contributing to the dollar's brief retreat. However, market dynamics are shifting as focus intensifies on today's economic releases, including the Core PCE data, personal income and expenditures, and the University of Michigan's May consumer sentiment index.

EUR/USD technical analysis

The EUR/USD has completed a downward movement to 1.0666 and corrected up to 1.0715. Currently, the market is forming another downward wave, targeting 1.0655. Should this level be reached, a rebound to 1.0690 is possible before continuing the downward trend towards at least 1.0577. This bearish outlook is supported by the MACD indicator, which remains below zero with a firm downward trajectory.

On the H1 chart, EUR/USD is consolidating around 1.0690. A downward breakout could lead to a continuation of the decline to 1.0655. Subsequently, a corrective move to 1.0690 may occur before a further drop to 1.0640. The Stochastic oscillator, hovering near 20, suggests potential for further declines before a rebound to 80 could happen, indicating volatile short-term movements.

Market outlook

Investors are advised to closely monitor the upcoming US economic data, which will likely influence Federal Reserve policy expectations and impact EUR/USD movements. The currency pair remains sensitive to shifts in US economic indicators and Federal Reserve signals regarding interest rates.

Author

Andrey Goilov

RoboForex

Higher economic education. Andrey Goilov has been working on the Forex market since 2005. A financial analyst and successful trader. Preference in trading is highly volatile instruments.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.