EUR/USD

EURUSD is trading within a narrow range during European session on Tuesday, following strong rebound in past two days after larger bears were rejected at key support at 1.0635 (May 31 low).

Technical picture remains increasingly bearish on daily chart (rising negative momentum / MA’s in full bearish setup) and warn that corrective action might be near its end (capped by daily Tenkan-sen).

Inflation in the Eurozone was slightly lower than expected in August, which should add pressure on the currency, though consumer prices are still over two times above ECB’s 2% target.

This keeps the central bank alerted, despite dovish signals from the last policy meeting, as the policymakers left the door opened for possible further hikes, should the situation deteriorate.

Near-term action can be described as consolidation while moving between 1.0700 (daily Tenkan-sen / psychological barrier) and 1.0635 support, with sustained break above 1.0700 to allow for stronger correction and expose upper pivots at 1.0768 (Sep 12 high) and 1.0792 (daily Kijun-sen).

Conversely, firm break of 1.0635 support would open way for test of next key supports at 1.0611 (Fibo 38.2% of 0.9535/1.1275 uptrend) and 1.0553 (daily Ichimoku cloud top).

Res: 1.0700; 1.0752; 1.0768; 1.0792.
Sup: 1.0675; 1.0654; 1.0635; 1.0611.

EURUSD

Interested in EUR/USD technicals? Check out the key levels

    1. R3 1.0753
    2. R2 1.0726
    3. R1 1.0709
  1. PP 1.0682
    1. S1 1.0665
    2. S2 1.0638
    3. S3 1.0621

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stays below 1.0850 as USD recovers ahead of Fed minutes

EUR/USD stays below 1.0850 as USD recovers ahead of Fed minutes

Following Tuesday's choppy action, EUR/USD stays under modest bearish pressure and trades below 1.0850 on Wednesday. The recovery seen in US Treasury bond yields and the souring market mood support the USD ahead of FOMC Minutes and weigh on the pair.

EUR/USD News

GBP/USD retreats below 1.2750 following UK CPI-inspired rally

GBP/USD retreats below 1.2750 following UK CPI-inspired rally

GBP/USD retreated below 1.2750 after rallying to a two-month-high above 1.2760 after the data from the UK showed that inflation was higher than expected in April. The US Dollar stays resilient against its rivals on Wednesday as markets turn cautious ahead of the FOMC Minutes. 

GBP/USD News

Gold drops below $2,400, focus shifts to FOMC Minutes

Gold drops below $2,400, focus shifts to FOMC Minutes

Gold price turned south and extended its slide after breaking below the key $2,400 level. The 10-year US Treasury bond yield holds steady above 4.4% and the US Dollar benefits from the negative shift seen in risk sentiment ahead of FOMC Minutes, not allowing XAU/USD to rebound.

Gold News

Shiba Inu price buy signal hints 25% upswing on the horizon for SHIB holders Premium

Shiba Inu price buy signal hints 25% upswing on the horizon for SHIB holders

Shiba Inu (SHIB) price continues its struggle above a key hurdle. This development comes as SHIB, an ERC-20 meme coin, reacts to the Ethereum spot ETF approval news.

Read more

Fed Minutes Preview: Markets to focus on comments regarding the inflation outlook

Fed Minutes Preview: Markets to focus on comments regarding the inflation outlook

The Fed left unchanged its monetary policy settings following the April 30-May 1 policy meeting as expected. In its policy statement, the US central bank said that there has recently been a lack of further progress toward the 2% inflation target.

Read more

Majors

Cryptocurrencies

Signatures