- EUR/USD catches fresh bids, looks to resume the recovery above 1.1600.
- Risk-on mood caps the US dollar’s rebound but positive yields could weigh on the spot.
- Upbeat US earnings reports cheer markets ahead of the critical Retail Sales report.
EUR/USD is advancing above 1.1600, extending its bounce amid improving market sentiment, which snaps the rebound in the safe-haven US dollar.
However, the EUR bulls remain cautious due to a buying resurgence seen in the US Treasury yields across the curve. The upbeat market mood is reflective of a 0.30% rise in the S&P 500 futures, as the Asian equities track the Wall Street optimism, fuelled by strong corporate earnings for the third quarter.
Robust earning seems to have shifted investors’ attention from growing inflationary risks on the global economy and China’s indebted property sector crisis. Meanwhile, the recent comments from European Central Bank (ECB) President Christine Lagarde also aides the upswing in the euro, especially after she said, "the rebound phase of the euro area economy is increasingly advanced."
However, it remains to be seen if the recovery attempts in the main currency pair from 15-month lows of 1.1524 sustain amid rising bets for earlier Fed rate hike while the European Central Bank (ECB) refrains from providing any hints on the scale back of the pandemic stimulus.
Further, the risk-on mood-driven rebound in the US Treasury yields could also limit EUR/USD’s advance above 1.1600. Meanwhile, the bulls may turn cautious heading towards the US Retail Sales release, with the American consumer spending likely to drop 0.2% MoM in September while the core figure seen lower at 0.5% as well.
Also, of note remains the US Michigan Consumer Sentiment data and Fedspeak for fresh cues on the Fed’s policy moves and the dollar valuations.
EUR/USD: Technical levels to consider
|Today last price||1.1608|
|Today Daily Change||0.0011|
|Today Daily Change %||0.09|
|Today daily open||1.1596|
|Previous Daily High||1.1624|
|Previous Daily Low||1.1584|
|Previous Weekly High||1.164|
|Previous Weekly Low||1.1529|
|Previous Monthly High||1.1909|
|Previous Monthly Low||1.1563|
|Daily Fibonacci 38.2%||1.1609|
|Daily Fibonacci 61.8%||1.1599|
|Daily Pivot Point S1||1.1579|
|Daily Pivot Point S2||1.1561|
|Daily Pivot Point S3||1.1539|
|Daily Pivot Point R1||1.1619|
|Daily Pivot Point R2||1.1642|
|Daily Pivot Point R3||1.1659|
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.