EUR/USD clinches fresh two-week tops beyond 1.1100

  • EUR/USD reaches new 2-week highs above the 1.11 mark.
  • DXY drops further and challenges the 98.00 support.
  • EMU Trade Balance figures, US Retail Sales next of relevance.

The upbeat mood around the shared currency remains well and sound so far this week and is now lifting EUR/USD to fresh multi-day peaks beyond 1.11 the figure.

EUR/USD looks to data, risk trends

After testing the area of 2019 lows near 1.0920 once again on Thursday, spot has managed to chart a bullish ‘outside day’ and retake the key 1.1100 barrier, as market participants continue to adjust to the recently announced ECB stimulus package.

In fact, following quite a volatile session on Thursday, EUR surprised markets after quickly reversing the post-ECB knee-jerk and positioning for extra upside. It is worth recalling that much of the ECB easing was already priced in, and the size of the QE at €20 billion per month was somewhat disappointing.

In addition, the selling bias continues to hurt the buck and is motivating the US Dollar Index (DXY) to drop and test lows in the 98.00 neighbourhood.

In the docket, German Wholesale Price Index contracted 0.8% MoM during August and dropped 1.1% on a yearly basis. Later, EMU Trade Balance results are expected along with Labour Costs figures.

EUR/USD levels to watch

At the moment, the pair is gaining 0.36% at 1.1103 and faces the next barrier at 1.1142 (55-day SMA) seconded by 1.1163 (high Aug.26) and finally 1.1183 (100-day SMA). On the flip side, a breach of 1.1030 (10-day SMA) would target 1.0925 (2019 low Sep.3) en route to 1.0839 (monthly low May 11 2017).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading around 1.1050, confined to a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates by 25bps but signal no further stimulus is on the cards.


GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.


USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.


Gold: Pivots around $1500 mark, awaits FOMC policy update

Gold extended its sideways consolidative price action through the early European session on Wednesday and was seen pivoting around the key $1500 psychological mark, awaiting FOMC policy decision.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Cryptos seeing multiple launches into the universe

The Altcoin market has quickly confirmed Tuesday’s analysis with flashing rises in the last 24 hours. The two eternal aspirants to lead the crypto market – Ethereum and XRP – are rising sharply against Bitcoin and increasing its value rapidly.

Read more