EUR/USD consolidates above 1.16, awaits fresh leads

EUR/USD is trading in a sideways manner above 1.16, is looking to re-enter pennant pattern.
Light economic calendar and the calm in the Italian bond markets is helping the EUR hold above 1.16.

Omkar Godbole FXStreet Contributor

The EUR/USD is holding above 1.16, despite having faced rejection at the pennant hurdle (lower end now acting as resistance) on Wednesday.

At press time, the pair is trading at 1.1615 and the lower end of the pennant is located at 1.1626.

The pennant breakdown and the sharp rise in the spread between the 10-year Italian bond yield and the 10-year German bund yield witnessed last week had put the bears in a commanding position.

However, the common currency has defied gravity this week, possibly due to the calm in the bond markets. For instance, the Italy-German yield spread now stands at 247 basis points vs Friday's high of 253 basis points.

As for today, the currency pair could continue to trade above 1.16 on lack of first tier data releases in the Eurozone and US. The absence of fresh news on Italy could keep the bond markets calm and the EUR better bid above 1.16.

If the Italy-German yield spread spikes, then the EUR will likely fall back below 1.16.

EUR/USD Technical Levels

Resistance: 1.1626 (pennant resistance), 1.1667 (50-day MA), 1.1747 (July 31 high)

Support: 1.1601 (session low), 1.1573 (previous day's low), 1.1530 (last week's low)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD stays weak near 1.3250 on resurgent USD demand

GBP/USD stays weak near 1.3250 in European trading on Tuesday, reversing a part of the previous day's advance to a one-week high. The pair ditches a three-day winning streak, undermined by the USD/JPY upsurge-led broad US Dollar rebound. US jobs data in next in focus.

EUR/USD keeps the red near 1.1400 on firmer US Dollar

EUR/USD remains in the red near 1.1400 in early Europe on Tuesday, snapping a three-day winning streak amid a firmer US Dollar. The pair trades with caution ahead of Germany's preliminary inflation readings and the US JOLTS Job Openings Survey.

Gold recovers early lost ground to YTD low; Fed hike bets and firmer USD to cap upside

Gold builds on its intraday recovery from the lowest level since November 2025, touched earlier this Tuesday, and climbs to the top end of its daily range heading into the European session. Any meaningful appreciation still seems elusive in the wake of a broadly firmer US Dollar. Against the backdrop of renewed Mideast tensions, mixed signals on US-Iran talks assist the USD to stall its recent pullback from the highest level since May 2025.

Ripple defends critical support, Stellar extends recovery

Ripple (XRP) trades around the key $1.00 psychological level, consolidating as the token awaits its next directional catalyst. Stellar (XLM) extends its recovery above $0.178 after posting modest gains at the start of this week.

US JOLTS Job Openings expected to show strong labor demand, endorsing Fed rate hike bets

The US Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey for May on Tuesday at 14:00 GMT. Job openings are expected to come in at 7.3 million in May.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.