EUR/USD Forecast: Poised to extend its intraday slide

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1818

US weekly unemployment claims improved to 787K in the week ended October 16.
The focus remains around a coronavirus aid package in the US.
EUR/USD in a corrective decline and could accelerate south once below 1.1810.

The American dollar is in recovery mode, recovering ground against most major rivals. The EUR/USD pair is trading in the red and near a daily low of 1.1811. The market mood improves just modestly as US representatives from major parties continue to discuss a stimulus deal, reporting progress but not yet able to reach an agreement. European indexes are struggling with their opening levels, while US futures are modestly up, as government bonds continue to retreat.

German data added pressure on the shared currency, as the German GFK Consumer Confidence Survey came in at -3.1 in November, worsening from a previous -1.7 and missing expectations of -2.8. The US, on the other hand, has just published Initial Jobless Claims for the week ended October 16, which came in at 787K, beating the expected 860K. The US will shortly unveil September Existing Home Sales, while the EU will publish the preliminary estimate of October Consumer Confidence.

EUR/USD short-term technical outlook

The EUR/USD pair is in a corrective decline and could extend the current slide according to intraday technical readings. The 4-hour chart shows that the price is battling with a bullish 20 SMA, although still well above the larger ones. Technical indicators in the mentioned time frame keep retreating from overbought levels, now approaching their midlines with strong bearish slopes. The decline will likely accelerate on a break below the mentioned daily low, the immediate support level.

Support levels: 1.1810 1.1770 1.1725

Resistance levels: 1.1870 1.1915 1.1950

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 stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.