EUR/USD: saved by US PPI miss

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1740

The EUR/USD eased within range at the beginning of the day, recovering modestly during London trading hours from a daily low of 1.1703, but overall heavy amid lack of appetite for high yielding assets. The absence of relevant macroeconomic data coming from the EU exacerbated the quietness, but US PPI figures finally injected some life to the pair, up ahead of the US opening on disappointing figures. The producer price index edged lower in July according to the official release, with the core figures showing that inflation at factory levels fell 0.1% in the month, and advanced just by 1.8% when compared to July 2016, below previous 1.9% and the expected 2.1%. The dollar edged lower with the news, presenting stronger declines against its safe-haven rivals, but with the EUR/USD pair barely advancing beyond 1.1740, holding below its daily high of 1.1769.

From a technical point of view, the 4 hours chart shows that the price remains below a bearish 20 SMA, this last at 1.1770 reinforcing the strength of the daily high as resistance, whilst technical indicators have barely bounced from their mid-lines, not enough to confirm further gains ahead, yet limiting the downside potential, as poor US inflation brings back to the table a conservative Fed ahead. Anyway, the pair would need to accelerate below 1.1690 to confirm a downward extension for today, with scope to test the 1.1650 region, although further declines beyond this last seem unlikely for today.

Support levels: 1.1690 1.1650 1.1610

Resistance levels: 1.1770 1.1810 1.1850

View Live Chart for the EUR/USD

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.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.