- EUR/USD fluctuates in a tight range near 1.0900 early Monday.
- Euro could stretch higher in case risk mood continues to improve.
- Key support seems to have formed in the 1.0850-1.0860 area.
EUR/USD managed to edge higher during the Asian trading hours on Monday and stabilized near 1.0900 after closing the previous week in negative territory. In the absence of fundamental drivers, the risk perception could drive the pair's action in the short term.
Euro price today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Japanese Yen.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.09% | -0.06% | 0.00% | 0.12% | -0.10% | 0.14% | -0.03% | |
| EUR | 0.09% | 0.04% | 0.09% | 0.21% | -0.01% | 0.23% | 0.07% | |
| GBP | 0.04% | -0.05% | 0.03% | 0.16% | -0.06% | 0.25% | 0.01% | |
| CAD | 0.00% | -0.10% | -0.05% | 0.14% | -0.08% | 0.20% | -0.03% | |
| AUD | -0.15% | -0.23% | -0.21% | -0.15% | -0.25% | 0.00% | -0.17% | |
| JPY | 0.07% | -0.03% | 0.07% | 0.08% | 0.22% | 0.28% | 0.05% | |
| NZD | -0.20% | -0.29% | -0.25% | -0.20% | -0.05% | -0.28% | -0.23% | |
| CHF | 0.01% | -0.07% | -0.02% | 0.03% | 0.16% | -0.06% | 0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The broad-based US Dollar (USD) strength on hawkish comments from Federal Reserve officials last week forced EUR/USD to stay on the back foot. According to the CME FedWatch Tool, markets are pricing in around 55% probability of a 25 basis points Federal Reserve (Fed) rate cut in March, down from nearly 70% at the beginning of the previous week.
Meanwhile, European Central Bank (ECB) President Christine Lagarde attended a panel at the World Economic Forum on Friday and noted that inflation in the Eurozone was coming down. Lagarde refrained from further commenting on the policy outlook and failed to trigger a noticeable reaction in EUR/USD.
The US economic docket will not offer any data releases on Monday. In the early European session, US stock index futures are up between 0.1% and 0.7%. In case Wall Street's main indices stage a bullish opening and continue to push higher in the second half of the day, the USD could have a hard time finding demand.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart rose above 50 early Monday and EUR/USD closed the last 6 4-hour candles above the 20-period Simple Moving Average (SMA). Although these technical developments point to a slightly bullish tilt in the short-term, buyers could hesitate to bet on a steady recovery. The pair could face strong resistance levels at 1.0925 (200-period SMA), 1.0950-1.0960 (100-period SMA, Fibonacci 23.6% retracement of the latest uptrend) and 1.1000 (psychological level).
On the downside, strong support area seems to have formed at 1.0860-1.0850 (Fibonacci 38.2% retracement, static level) before 1.0800 (psychological level, static level) and 1.0780 (Fibonacci 50% retracement).
(This article was corrected at 08:54 GMT to say the 55% CME FedWatch Tool probability in March is for a rate cut, not a rate hike).
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.