EUR/USD Forecast: Dollar backed by fears

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1809

US Federal Reserve chief Powell reiterated its dovish message.
US data came in mixed, maintaining the upside limited for high-yielding assets.
EUR/USD meeting sellers on spikes, lower lows at sight.

The American currency managed to recover some ground on Thursday, ending the day up against most major rivals. The EUR/USD pair topped 1.1850, pulling back towards the 1.1800 price zone following the release of mixed US macroeconomic figures and extending its slide through the rest of the US session. US Federal Reserve chief Powell testified before Congress for a second consecutive day, adding nothing new to its conservative stance.

Data wise, the US published the July NY Empire State Manufacturing Index, which improved to 43 from 17.4, although the Philadelphia Fed Manufacturing Survey contracted from 30.7 to 21.9 in the same period. In addition, Initial Jobless Claims for the week ended July 9 resulted in 360K as expected. The country also released June Industrial Production, which was up a modest 0.4% MoM and Capacity Utilization, up 75.4%, missing the market’s expectations. On Friday, the EU will publish June inflation data and the May Trade Balance. The US will release June Retail Sales, seen at -0.4% MoM.

EUR/USD short-term technical outlook

The EUR/USD pair holds around the 1.1800 level and is at risk of falling further. The 4-hour chart shows that the pair keeps developing below bearish moving averages after a failed attempt to run beyond the 20 SMA. The Momentum indicator advances while the RSI stands pat, both within negative levels. The pair set a three-month low at 1.1771, the level to break to confirm another leg south.

Support levels: 1.1770 1.1720 1.1685

Resistance levels: 1.1840 1.1885 1.1920

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 weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.