EUR/USD consolidates daily losses around 1.1870 amid thin trading conditions

EUR/USD continues to fluctuate in a tight range on Monday.
US Dollar Index remains on track to post modest daily gains.
Focus shifts to ZEW Survey and eurozone Q2 GDP data.

Eren Sengezer FXStreet

The EUR/USD pair reached its highest level since late July at 1.1910 on Friday and ended up closing the second straight week in the positive territory. With the trading action turning subdued on Monday, the pair erased a small portion of its gains and was last seen losing 0.12% on the day at 1.1870.

The disappointing August jobs report from the US triggered a USD selloff and allowed EUR/USD to gather bullish momentum. The US Bureau of Economic Analysis reported that Nonfarm Payrolls in the US increased by 235,000 in August. This print missed analysts' estimate of 750,000 and the US Dollar Index (DXY) dropped below 92.00 for the first time in a month. Currently, the DXY remains on track to close the day modestly higher as market conditions remain thin due to the Labor Day holiday in the US.

ECB will announce policy decisions on Thursday

On Tuesday, Eurostat will release the Gross Domestic Product growth figures for the second quarter. Investors expect the eurozone economy to contract by 0.6% on a quarterly basis. Additionally, the ZEW Survey - Economic Sentiment data from Germany and the EU will be looked upon for fresh impetus.

More importantly, the European Central Bank (ECB) will announce its Interest Rate Decision and release the Monetary Policy Statement.

Preview the ECB's September meeting, "discussions are certain to take place but is there unanimity or consensus to move forwards and rest purchases to EUR10 B - EUR15 B per week from October?" question Société Générale analysts. "If there is not, last week’s price action will turn out to have been a head fake, causing investors to reverse steepening trades in EGBs and swaps and take profits in EUR/USD.”

Technical levels to watch for

EUR/USD

Overview
Today last price	1.1869
Today Daily Change	-0.0015
Today Daily Change %	-0.13
Today daily open	1.1884

Trends
Daily SMA20	1.1766
Daily SMA50	1.1806
Daily SMA100	1.1951
Daily SMA200	1.2004

Levels
Previous Daily High	1.1909
Previous Daily Low	1.1866
Previous Weekly High	1.1909
Previous Weekly Low	1.1783
Previous Monthly High	1.19
Previous Monthly Low	1.1664
Daily Fibonacci 38.2%	1.1893
Daily Fibonacci 61.8%	1.1882
Daily Pivot Point S1	1.1864
Daily Pivot Point S2	1.1843
Daily Pivot Point S3	1.1821
Daily Pivot Point R1	1.1907
Daily Pivot Point R2	1.193
Daily Pivot Point R3	1.195

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD deflates to fresh lows, targets 1.1600

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GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.