EUR/USD Forecast: Growth concerns weigh on the shared currency

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1705

The shared currency remained under pressure amid concerns about economic growth.
US Federal Reserve’s Powell said the US economy remains resilient throughout the crisis.
EUR/USD is trading at fresh two-month lows and still biased lower.

The EUR/USD pair plunged below the 1.1700 level this Tuesday, trading as low as 1.1691, a level last seen in July. Concerns about a second coronavirus wave hitting Europe maintained the shared currency under pressure, despite stocks pared their bleeding and better-than-expected EU data. The preliminary estimate of September Consumer Confidence printed at -13.9 from -14.7 in August.

In the US, Fed’s Chair Powell testified before a House special commission, noting that the US economy has remained resilient and that the banking system has held up well during the ongoing crisis. However, he also said that further economic progress would depend if they can control the virus and most likely will need fiscal support.

This Wednesday, Markit will release the preliminary estimates of its September PMIs for the EU and the US. Manufacturing output is generally seen better than in August, while services activity is seen improving in the EU but deteriorating in the US. Powell will testify

EUR/USD short-term technical outlook

The EUR/USD pair is trading around the 1.1700 level, maintaining the bearish bias. The 4-hour chart shows that it remains below bearish moving averages, with the 20 SMA accelerating south, currently around 1.1800. Technical indicators, in the meantime, have bounced modestly from oversold levels, but lack directional strength. The risk remains skewed to the downside, with renewed selling interest below 1.1695 anticipating another leg south for this Wednesday.

Support levels: 1.1695 1.1660 1.1620

Resistance levels: 1.1725 1.1760 1.1800

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 looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold declines to near $5,050, focus shifts to US jobs data

Gold price falls to near $5,045 during the early Asian session on Wednesday. Traders assess whether prices have found a floor following a historic sell-off. The delayed US employment report for January, which was pushed back due to the recently ended four-day government shutdown, will take center stage later on Wednesday.

Ethereum: Whales buy the dip amid rising short bets

Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.