EUR/USD bulls floundering amongst the US dollar's correction


  • EUR/USD shied away from the 1.18 area which leaves prospects of 1.20 psychological lifeless. 
  • US dollar is firming as US real yields stall on the downside.

EUR/USD is trading at 1.1762 at the time of writing, struggling to convince on rallies having travelled lower from a high of 1.1808 to a late European low of 1.1722 on the day.

The single unit, however, is still some 0.2% higher at the time of writing, although there are signs of resistance in the move in the greenback.

The US dollar has found some legs on Tuesday, supported in an uptick in real yields and despite an uptick in Global equities following comments by Trump about possible tax cut on capital gains. 

Meanwhile, there is a focus on US fiscal stimulus talks and a decision on EU tariffs, but with lawmakers out of town and with Trump aides not expecting new stimulus talks anytime soon, it looks rather bleak for the US economy at this juncture.

We will await tomorrow's Consumer Price Index which analysts at TD Securities expect to it have risen strongly, 'and not just due to a bounce in gasoline'.

We forecast a 0.3% m/m rise in core prices. We expect relatively strong gains in airfares, other lodging, and used vehicle prices in particular. That said, we think the slowing in rents is more indicative of the trend in the year ahead. We expect the 12-month change in core prices to remain low at 1.2% in the July report.  

As for recent data from the eurozone, the German ZEW, the first survey data for August, showed mixed dynamics.

The Expectations Index improved notably more than expected to 71.5, but the Current Situation Index continued to deteriorate slightly to -81.3, against the expectation of a sharp improvement. Most industries showed improvement, except the Steel and Banking industries, which deteriorated slightly,

the analysts at TSS explained.

EUR/USD levels

 

Overview
Today last price 1.1762
Today Daily Change 0.0024
Today Daily Change % 0.20
Today daily open 1.1738
 
Trends
Daily SMA20 1.1657
Daily SMA50 1.1425
Daily SMA100 1.1165
Daily SMA200 1.1109
 
Levels
Previous Daily High 1.1801
Previous Daily Low 1.1736
Previous Weekly High 1.1916
Previous Weekly Low 1.1696
Previous Monthly High 1.1909
Previous Monthly Low 1.1185
Daily Fibonacci 38.2% 1.1761
Daily Fibonacci 61.8% 1.1776
Daily Pivot Point S1 1.1716
Daily Pivot Point S2 1.1694
Daily Pivot Point S3 1.1651
Daily Pivot Point R1 1.178
Daily Pivot Point R2 1.1823
Daily Pivot Point R3 1.1845

 

 

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