EUR/USD Current price: 1.1734
- EUR weak, but within familiar levels.
- Hopes on upcoming US tax reform backing dollar's gains.
The common currency slides against its US rival, slowly but steadily ever since the day begun. Heading into the US opening the pair is trading a couple of pips above last week's low of 1.1720, with no major driver leading the way, but demand for the greenback, fueled by hopes that the US tax reform is ready to pass the Congress. The macroeconomic calendar didn't offer something relevant so far today, although the EU's consumer confidence index for October is still pending of release. Anyway, the fundamental week is set to start on Tuesday, with Markit PMIs for both economies, and with ECB's monetary policy meeting on Thursday being the main event of the week.
Technically, the bearish momentum is strong according to the 4 hours chart, as technical indicators keep heading lower, now nearing oversold readings, as the price extends below its moving averages. The immediate support is 1.1720, followed by an intermediate one at 1.1690, en route to the critical 1.1660 level, where the pair bottomed the last two months. A break below this last seems unlikely short-term, but a daily close below the 1.1700 level will surely grant at least a test of the level.
Support levels: 1.1720 1.1690 1.1660
Resistance levels: 1.1780 1.1825 1.1860
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.