EUR/USD challenges 7-week lows near 1.1180

EUR/USD drops to multi-week lows near 1.1180.
Cautious trade expected to grow ahead of ECB event.
Advanced EMU Consumer Confidence due later in the day.

Pablo Piovano FXStreet

The selling pressure around the European currency has picked up extra pace on Tuesday, sending EUR/USD to fresh multi-week lows in sub-1.1200 levels.

EUR/USD looks to data, ECB, UK politics

The pair is down for the third consecutive session today, managing to break below the multi-session consolidative theme as well as the critical support area in the 1.1200 neighbourhood.

Spot has resumed the downside pari passu with the upbeat tone surrounding the buck in response to shrinking bets for a large interest rate cut by the Federal Reserve at the July meeting. In fact, market consensus appears to have practically priced in a 25 bps rate cut next week.

Additionally, the likeliness of new easing measures to be announced at the ECB meeting on Thursday keep the sentiment around EUR depressed for the time being.

In today’s docket, the European Commission will publish the preliminary reading of the Consumer Confidence gauge for the current month. Across the pond, the housing sector will once again be in the limelight with the release of Exiting Home Sales during last month.

In addition, a new UK Prime Minister will be announced around midday in Europe, with Boris Johnson most likely to succeed Theresa May at Number 10.

What to look for around EUR

The inability of the pair to clear the important resistance area in 1.1280/90 has encouraged sellers to return to the markets and drag EUR back below the 1.1200 level, threatening to visit the key contention area in the 1.1181/76 band. Further out, occasional bullish attempts should be seen as a short-lived against the backdrop of renewed and increasing speculations of another wave of monetary stimulus from the European Central Bank as early as this week’s meeting, including interest rate cuts, the resumption of the QE programme and potential changes in the forward guidance.

EUR/USD levels to watch

At the moment, the pair is retreating 0.21% at 1.1185 and faces immediate contention at 1.1181 (low Jun.18) seconded by 1.1176 (low Mar.7) and finally 1.1106 (2019 low May 23). On the upside, a breakout of 1.1286 (high Jul.11) would target 1.1313 (200-day SMA) en route to 1.1412 (high Jun.25).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.