EUR/USD Current Price: 1.1788
- Risk appetite led the way at the beginning of the week, Wall Street flirted with record highs.
- The US FDA approved the use of convalescent plasma to treat severe coronavirus cases.
- EUR/USD failed to regain the upside, struggles to retain the 1.1800 level.
The EUR/USD pair peaked at 1.1849 on Monday, underpinned by a ruling good mood. The positive sentiment prevailed throughout the day, with US indexes soaring to flirt with record highs and US Treasury yields ticking higher. Demand for the greenback resumed in the American session, with the EUR/USD pair returning to sub-1.1800 level, where it stands ahead of Tuesday opening.
The optimistic stance was triggered by weekend news indicating that the US FDA approved the use of convalescent plasma to treat severe coronavirus cases, an experimental therapy that other countries are already using. The macroeconomic calendar was scarce, as the only figure out was the US Chicago Fed National Activity Index for July, which came in at 1.18, worse than the expected 2.73 and below the previous 5.33.
This Tuesday, Germany will publish the second estimate of its Q2 GDP, foreseen unchanged at -10.1%, and the August Business Climate, expected at 92 from 90.5 in the previous month. The US will publish July New Home Sales and the CB Consumer Confidence, seen bouncing from 92.6 to 93.2.
EUR/USD short-term technical outlook
The latest advance of EUR/USD fell short of reverting the bearish tone of the pair, according to intraday technical readings. The 4-hour chart shows that the pair met sellers around a bearish 20 SMA, also settling below a flat 100 SMA. Technical indicators, in the meantime, recovered from near oversold readings but failed to regain positive ground, now stable within negative levels. The risk is skewed to the downside, with further declines expected on a break below the 1.1760/70 support area.
Support levels: 1.1760 1.1710 1.1665
Resistance levels: 1.1825 1.1860 1.1915
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
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.