Peter Bukov
Axiory Global Ltd.
Traders sold the shared currency on Tuesday and the EURUSD pair dived nearly half a percent as it was falling toward the 1.12 mark during the US session.
Earlier, July´s German ZEW surveys failed to meet estimates and the economic sentiment gauge worsened further to -24.5 from -21.1 previously, while the current situation also fell sharply back into negative territory. It looks like the manufacturing sector in the biggest EU economy will stay in a recession for a while, while services sector is also seen slowing.
Shortly after, the EU trade balance came out and it improved notably, from 15.7 billion EUR to 20.2 billion EUR, but this failed to help the euro.
The focus then shifted toward US data - US retail sales topped estimates and printed 0.4%, above 0.1% expected. The control core group indicator also improved and came out at 0.7%, above 0.6% previously and well beyond 0.3% expected. The greenback pushed higher after these numbers.
From the technical perspective, the 1.12 mark is still a strong support and dips to this level could be bought, especially when the market expects 2-3 rate cuts in the US till the end of the year.
However, should this level fail to hold, bears could be motivated to push the price further lower, with the next target probably near 1.1180 and afterward at 1.1150. On the upside, the first resistance might be seen at 1.1245 and if broken to the upside, the rally could lift the euro to the 1.1285.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.