EUR/USD got its ZEW, and fell down

Alena Afanaseva Independent Analyst

FXStreet (Moscow) - EUR/USD opened the day at 1.3757, but since that time moved up by tiny steps reaching 1.3770 right before the release, and posting 1.3746 right after.

The first catalyst of Europe

The pair showed timid moves higher on hopes for the stronger German data which helped it to go above 1.3770 area just before the readings came out. The Economic sentiment index showed downward moves from last December when it posted multi-year high at 62. And this time the market expected to see another decrease from 43.2 in April to 41.3. However, the data came out at depressing 33.1 supporting the move of the pair to 1.3746 right after release, and making the market believe that Germany has hard times with strong national currency damaging export activity. The next target of the pair at 1.3717 support level.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3760, with support below at 1.3745, 1.3742 and 1.3717, with resistance above at 1.3773, 1.3788, and 1.3801. Hourly Moving Averages are bearish, with the 200SMA at 1.3862 and the daily 20EMA at 1.3832. Hourly RSI is bearish at 42.

Author

Alena Afanaseva

Independent Analyst

Alena joined FXStreet in 2014 as an Asia News Editor, having previously fulfilled senior research and analysis roles at a number of Russian brokerage houses.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Week ahead: Rate hike bets face a crucial data week

Despite the solid drop from the mid-September high, oil prices remained in the driver’s seat for another week, setting the tone in financial markets. Six months have passed since the late-February start of the US-Iran conflict, and there is still no breakthrough in the stalled talks, despite pressure from regional leaders and the rest of the world.

CFTC Report: Defensive currency positioning takes hold

The week in one sentence: Sterling and Euro shorts deepened in the week to September 22, while Yen longs were cut sharply. Oil positioning improved despite a steep price decline, and Gold exposure remained crowded. The main signal was a more defensive currency positioning backdrop.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.