EUR/USD Price Forecast: Lower lows likely, with scope to test 1.1470

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1585

Contradictory messages from US President Trump about China do not affect the market’s upbeat mood.
Different Fed officials will do public appearances, but no comments on monetary policy are expected.
EUR/USD nears October base in the 1.1540 area, with an increased bearish potential.

The EUR/USD pair extends its weekly slide on Wednesday, currently trading at around 1.1580. In the absence of relevant news, the US Dollar (USD) continues to benefit from increased hopes of de-escalating tensions between the United States (US) and China. At the same time, tepid European progress keeps the Euro (EUR) subdued.

US President Donald Trump kept delivering contradictory messages, saying he thinks he will have a very successful meeting with Chinese President Xi Jinping. However, he also stated: “Maybe it won’t happen. Things can happen where, for instance, maybe somebody will say, ‘I don’t want to meet, it’s too nasty.’ But it’s really not nasty, it’s just business.” Market players don’t seem to be concerned about Trump’s latest words.

Throughout the first half of the day, several European Central Bank (ECB) officials hit the wires, including President Christine Lagarde. However, none of them specifically referenced monetary policy, resulting in no price action. In the American afternoon, Federal Reserve (Fed) officials will be on the wires, yet given that they are in the blackout period prior to the Federal Open Market Committee (FOMC) monetary policy decision, no relevant comments are to be expected.

EUR/USD short-term technical outlook

The daily chart for the EUR/USD pair shows its trading in the red for a fourth consecutive day and pressuring fresh weekly lows. Technically speaking, the risk of a downward extension has increased, as the pair develops below its 20 and 100 Simple Moving Averages (SMAs), with the shorter one about to cross below the longer one, both now in the 1.1650 region. Other than that, technical indicators maintain their downward slopes within negative levels, favoring lower lows ahead.

The 4-hour chart shows that technical indicators lost their downward strength near oversold readings, but give no signs of downward exhaustion. At the same time, EUR/USD is developing below all its moving averages, with the 20 SMA gaining bearish strength below the longer ones, reflecting increased selling interest. The pair bounced sharply from the 1.1540 a couple of times in the last few weeks, making of the region a relevant support area. Once below it, the pair could extend its slide towards the 1.1470 region, a long-term static support area.

Support levels: 1.1540 1.1510 1.1470

Resistance levels: 1.1650 1.1690 1.1740

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.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.