The euro closed lower on Wednesday, dropping to 1.1292(-37 pips) against the greenback. The pair has now retraced completely its weekly gains, as the Dollar strengthened across the board despite weaker-than-expected US inflation data. US reported consumer price index rose 0.1% in May, in line with expectations, while CPI grew 1.8% YoY below the 1.9% of consensus. Core CPI readings also came a touch softer than anticipated, scoring 0.1% MoM versus 0.2% expected, and 2.0% YoY versus 2.1% forecasted. However, data barely bothered the greenback, as a rate cut by the Fed seems mostly priced in by now. During the New York session, President Trump made his daily comment and threatened with imposing tariffs on China and Mexico if no deals are reached.

EURUSD 4 Hour Chart



From a technical view, the pair made an upside attempt but was once again rejected from the top of its recent range, with today's peak at 1.1343. The pair broke below the 20-SMA(Blue Line) in 4-hour charts and slid below the 1.13 mark. The technical picture has turned negative in the short-term charts, with the Momentum and the RSI indicators both pointing south below their midlines, with the price below the 23.6% Fibo retracement of the 1.1107/1.1347 rally. The decline could easily extend to next Fibo level at 1.1255. However, in the daily charts, indicators are correcting from overbought conditions but remain positive, suggesting the pullback should be limited. On the upside, the pair needs a clear break above 1.1347 to test the 200-day SMA(Red Line) around 1.1365 first, en route to 1.1400.



The cable pair was down on Wednesday, closing at 1.2692(-31 pips). GBP/USD pair moved sharply lower on Wednesday, amid a stronger Dollar and with the Pound facing renewed pressure from the defeat of the parliamentary vote designed to stop a hard Brexit. In an extremely close vote, MPs voted 298/309 on the Labour-led motion to prevent the UK leaving the EU without a deal. Labour leader Jeremy Corbyn said MPs needed to be told again about the "disastrous" impact of the UK leaving the EU without an agreement.

GBPUSD 4 Hour Chart



The pair fell to 1.2680, but the downside has been contained by the 100-SMA(Blue Line) in 4- hour charts while indicators are not giving clear signs, with Momentum and RSI flat and around their midlines. However, the overall perspective remains slightly negative according to daily charts. If GBP/USD breaks below 1.2650, then the pressure would mount, sending the pair quickly to test the 1.2560 zone. On the contrary, a break above 1.2820 could ease immediate pressure and refocus the pair to 1.2900.

The information contained in this website is of general nature only and does not take into account your objectives, financial situation or needs. Please ensure that you read the Financial Services Guide (FSG), Product Disclosure Statement (PDS), and Terms and Conditions which can be obtained on our website, and fully understand the risks involved before deciding to acquire any of the financial products listed on this website.

AETOS Capital Group Pty Ltd is registered in Australia (ACN 125 113 117; AFSL No. 313016) since 2007 and is a wholly owned subsidiary of AETOS Capital Group Holdings Ltd, carrying on a financial services business in Australia, limited to providing the financial services covered by the Australian financial services licence.

Trading margin FX and CFDs carries a high level of risk and may not be suitable for all investors. You are strongly recommended to seek independent financial advice before making any investment decisions.

This commentary is owned by AETOS, and copying, reproduction, redistribution and/publishing of this material for any purpose in whole or in part without the prior written consent of AETOS is prohibited.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD challenges weekly highs is a sentiment-driven advance

The financial markets continue to focus on sentiment instead than on data, with equities leading the way. Upbeat earnings reports overshadow coronavirus-related concerns. EUR/USD nearing June monthly high at 1.1422.


GBP/USD trims intraday losses, trades flat around 1.2550

The US session is seeing the dollar gave up early gains, even against the weakened Pound. GBP/USD hovers around 1.2550, despite disappointing UK GDP.


Gold advances to fresh daily highs near $1,810

The XAU/USD pair closed the first day of the week with small gains above $1,800. After spending the European session moving sideways in a tight channel, the pair turned north on broad USD weakness during the American session. 

Gold News

Bitcoin low volatility indicates a significant move to $8,000 or $10,000 is nearby

Bitcoin price is currently at $9,229 after a brief dip to $9,104. It is currently below the daily 12-EMA and the 26-EMA which have been unable to cross positively due to the lack of bullish continuation. 

Read more

WTI Oil Outlook: Concerns of slowdown in global demand recovery pressure oil price

WTI oil remains at the back foot on Tuesday and establishes below $40 level, as sentiment weakened on news of new restrictions in California due to increased number of infections.

Oil News

Forex Majors