EUR/USD Current price: 1.1986
The EUR/USD pair started the day with a positive tone, advancing briefly above 1.2000, unable to confirm a bullish breakout of the level, and holding nearby for most of the day. The common currency find support on easing demand for the greenback, as market´s mood remains high, and positive numbers coming from Germany, as the ZEW survey showed that sentiment improved in the country by more than expected, up to 17 from previous 10. The assessment of the current situation in Germany was also upbeat, with the index at 87.9 from previous 86.9. The pair was unable to advance as for the whole EU, sentiment improved by less than expected, with the index coming in at 31.7, up from previous 29.3, but below the expected 32.4. Anyway, news agencies jumped in with reports indicating that the ECB may delay decisions on QE tapering towards December, amid EUR's strength, according to "people familiar with the matter." Once again, jawboning on EUR's strength.
US data just released came in mixed, with Housing starts in August down by 0.8%, but Building permits jumping by 5.7%. Import prices were 0.6% in the same month, whilst the current account balance showed a larger-than-expected deficit en Q2 of $123.1B .
The pair slowly recovered from a low of 1.1956, reached on ECB's headlines, with a generally positive stance in the 4 hours chart that anyway needs further confirmations before calling for an upward extension, as the price holds above its moving averages, but technical indicators head lower within positive territory. The pair would need to break above 1.2030, the immediate resistance, to gain some further upward traction, while below 1.1910 the risk will turn south for the rest of the day, quite unlikely at the time being.
Support levels: 1.1950 1.1910 1.1870
Resistance levels: 1.2030 1.2060 1.2100
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 stays near 1.0850 after US housing data
EUR/USD trades in negative territory at around 1.0850 in the early American session on Tuesday. The US Dollar preserves its strength following the upbeat housing data and makes it difficult for the pair to gain traction. The two-day Fed meeting goes underway on Tuesday.
GBP/USD recovers modestly from two-week lows, trades near 1.2700
GBP/USD staged a modest rebound after touching its lowest level in two weeks below 1.2700 on Tuesday. The cautious market mood helps the US Dollar hold its ground and limits the pair's upside as markets gear up for the Fed and the BoE policy meetings.
Gold stays in daily range near $2,160
Gold fluctuates in a narrow band at around $2,160 for the second consecutive day on Tuesday. Ahead of the Fed's policy announcements, the benchmark 10-year US Treasury bond yield moves sideways near 4.3% and limits's XAU/USD's volatility.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Shocker, Yen weakens after BoJ hike
The Bank of Japan (BoJ) scrapped its negative rate policy, raised the rates from -0.10% to 0%, ditched its YCC policy and ended the purchases of ETF and Japanese real estate investment trusts.