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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD rising after upbeat German PMI data

EUR/USD is trading around 1.1100, up on the day. German manufacturing PMI surprised with 43.6 and other figures also beat expectations. The ECB minutes are next.

EUR/USD News

GBP/USD stabilizing above 1.2100 ahead of the Johnson-Macron meeting

GBP/USD is trading above 1.2100, steady. After German Chancellor Merkel offered UK PM Johnson 30 days to solve the Irish Backstop problem, Johnson meets French President Macron.

GBP/USD News

USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

USD/CNH: Rallies, confirms falling channel breakout

Another wave of CNH selling could soon hit the market as the pair technical charts are reporting a bullish breakout. For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4H chart.

Read more

Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

Majors

Cryptocurrencies

Signatures