EUR/USD Forecast: Bears retain control amid persistent risk aversion

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1632

August UD Durable Goods Orders came in mixed, rising just 0.4% in the month.
European governments are imposing restrictions amid resurgent coronavirus cases.
EUR/USD is technically bearish with no signs of changing course.

The EUR/USD pair extended its weekly decline to 1.1611 on Friday, as demand for the greenback prevailed despite mixed US data. The country published August Durable Goods Orders, which increased 0.4%, below the 1.0% expected, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Speculative interest ignored the better shape of stocks’ indexes, as Wall Street got to close in the green. Concerns about sluggish economic growth amid the ongoing pandemic remain behind the latest dollar’s strength.

The shared currency, on the other hand, remained under pressure amid the second wave of coronavirus in the Union, forcing governments to impose restrictions. The week will start in slow motion, as the EU won’t publish relevant data, while the US will release a minor figure, the September Dallas Fed Manufacturing Business Index.

EUR/USD short-term technical outlook

The EUR/USD pair has turned bearish, and technical readings in the daily chart indicate that the slump may continue next week. The pair has fallen below a now mildly bearish 20 DMA, while the Momentum indicator consolidates within negative levels and the RSI heads lower near oversold readings. In the shorter-term, and according to the 4-hour chart, the risk is also skewed to the downside, as selling interest remains aligned around a firmly bearish 20 SMA, currently at 1.1665. Technical indicators, in the meantime, have pared their declines, but remain within negative levels, indicating limited buying interest.

Support levels: 1.1605 1.1560 1.1520

Resistance levels: 1.1665 1.1715 1.1760

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.