S1 |
S2 |
S1 |
R1 |
R2 |
R3 |
1.1212 |
1.1300 |
1.1434 |
1.1553 |
1.1685 |
1.1803 |
EUR/USD has posted slight gains in the Friday session. Currently, the pair is trading at 1.1524, up 0.21% on the day. On the release front, there are no major eurozone indicators. Italian industrial production declined by 1.6%, well short of the estimate of -0.3%. Investors are bracing for weak inflation numbers out of the United States. CPI is expected to drop to -0.1%, while Core CPI is forecast to remain steady at 0.1%
Manufacturing sectors across the eurozone continue to struggle. Industrial production in Italy fell by 1.6% in November and in France the drop was 1.3%. The biggest worry is over Germany, where industrial production has slipped for three straight month. With the three largest economies in the eurozone in trouble, conditions may not warrant any rate increases in the foreseeable future. The ECB winded up its stimulus program last month, and had expressed plans to raise rates later this year.
Investor optimism is higher this week, as hopes are high that trade tensions between the U.S. and China could ease. The world’s two largest economies have been engaged in a nasty tariff spat, which has rocked the markets in recent weeks and threatens to put a chill on global growth. Chinese and U.S. officials met in China this week and the talks reportedly produced “minor progress”, raising hopes that the sides will reach an agreement and ease global trade tensions. The stakes are high, as President Trump has threatened to impose higher tariffs on $250 billion worth of Chinese products if there is no deal by March 1.
EUR/USD Fundamentals
-
4:00 Italian Industrial Production. Actual -1.6%
-
00:00 US FOMC Member Clarida Speaks
-
8:30 US CPI. Estimate -0.1%
-
8:30 US Core CPI. Estimate 0.2%
-
14:00 US Federal Budget. Estimate -8.08B
Open: 1.1500 High: 1.1533 Low: 1.1497 Close: 1.1522
EUR/USD Technical
EUR/USD posted small gains in the Asian session and is showing limited movement in European trade
-
1.1434 is providing support
-
1.1553 is the next resistance line
-
Current range: 1.1434 to 1.1533
Further levels in both directions:
-
Below: 1.1434, 1.1300, 1.1212 and 1.1120
-
Above: 1.1553, 1.1685 and 1.1803
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.