EUR/USD Current Price: 1.0906
- Sentiment turned sour as US President Trump escalated tensions with China.
- Data coming from the US and the US continued to reflect the effects of COVID-19 on the economy.
- EUR/USD pressures the 1.0900 threshold and poised to extend its decline.
Risk-off took over the financial world at the beginning of the week, with the greenback edging higher against most major rivals. The EUR/USD pair traded as low as 1.0895, ending the day just above this last. The dismal market mood was triggered by mounting tensions between the US and China, as US President Trump said that he has strong evidence that the coronavirus originated in a Wuhan lab. He also said that the Asian giant is not complying with the trade deal quotas, and menaced to terminate the phase one.
Data coming from Europe was mixed, as the final version of the German April Markit Manufacturing PMI was upwardly revised to 34.5, although the one for the whole Union came down to 33.5. Also, the EU Sentix Investor Confidence index plunged to -41.8 in May, much worse than the -33.5 anticipated. As for US data, the ISM-NY Business Conditions Index for April resulted at 4.3 from 12.9 previously, while March Factory Orders fell by 10.3%. This Tuesday, the EU Commission will release its growth forecast, and against the usual, it may impact the shared currency. The US will publish the April ISM Non-Manufacturing PMI, previously at 50.
EUR/USD short-term technical outlook
The EUR/USD pair is at risk of extending its decline, as, in the 4-hour chart, it settled below its 20 SMA for the first time in over a week. In the mentioned time-frame the 100 and 200 SMA converge directionless at around 1.0880, providing support, while technical indicators have turned flat around their midlines. Further declines are to be expected on a break below 1.0880, the immediate support.
Support levels: 1.0880 1.0830 1.0795
Resistance levels: 1.0920 1.0950 1.0995
View Live Chart for the EUR/USD
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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.