The bears are fighting back control, as we progress towards the European opening, with the EUR/USD pair testing daily lows of 1.1138.

EUR/USD back below 1.1150 levels

The overnight recovery in EUR/USD from two-week lows of 1.1132 lost legs near 1.1160 levels, as broad based US dollar demand appears to have seeped back into markets amid a positive tone seen around Treasury yields.

Treasury yields continue to extend the rebound on increased hopes of balance sheet normalization beginning as early as this September, after the Fed unveiled its plans to normalize the balance sheet in its policy statement.

The US central bank hiked rates on Wednesday by 25 bps as widely expected and hinted towards another rate hike later this year.

Moreover, the Euro also remains under pressure, as markets expect the Eurozone inflation to drop 0.1% m/m, while the annualized core inflation growth is expected to have slowed to 0.9% from the previous month’s 1.2% rise.

Next of note for the major also remains a flurry of US macro news, which includes housing data, consumer sentiment and LMCI data, due later in the NA session.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank notes: “EUR/USD outlook is negative: The Euro has eroded the 2 month uptrend and should come under renewed downside pressure. Initial support is the 1.1135 channel followed by the 1.1070/23.6% retracement of the move higher this year and then the 55 day ma at 1.0968. Rallies are likely to find initial resistance offered by the 20 day ma at 1.1211 and remain capped by 1.1300.” 

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

GBP/USD defends 1.1900 after mixed UK Retail Sales

GBP/USD defends 1.1900 after mixed UK Retail Sales

GBP/USD is off the lows but remains vulnerable amid mixed UK Retail Sales and broad USD strength. The UK Retail Sales surprised positively, with a 0.3% rise MoM in July. On an annualized basis, UK consumer spending fell 3.4% vs. 3.3% expected. 


EUR/USD drops towards 1.0050 amid recession woes, hawkish Fed bets

EUR/USD drops towards 1.0050 amid recession woes, hawkish Fed bets

EUR/USD holds lower ground near the monthly bottom, approaching 1.0050 as the US dollar trades firmer amid a sluggish European morning. Fears of German recession, geopolitical concerns and hawkish Fedspeak weigh on the major currency pair.


Gold: Firmer DXY directs bears towards $1,730

Gold: Firmer DXY directs bears towards $1,730

Gold price takes offers to renew monthly low near $1,750 during early Friday morning in Europe. The bullion prices register the five-day downtrend as the US dollar bulls cheer recession woes, as well as firmer US data and hopes of the Fed’s aggression vis-à-vis rate hikes.

Gold News

AVAX price will give holders an opportunity to get out before another 20% crash

AVAX price will give holders an opportunity to get out before another 20% crash

AVAX price is in a tough spot as it approaches the end of its uptrend that has been ongoing for two months. While bearish as the altcoin looks, a minor relief rally or bounce could help investors cash out before another leg down. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!