EUR/USD consolidates gains after finding support above 1.1220


  • Euro again capped by 1.1250 retreats under 1.1230. 
  • US data show a deceleration in the job market and service sector. 

The EUR/USD pair peaked earlier today 1.1254 but failed to hold on top of 1.1250 and pulled back. It continued to retreat even after disappointing US data. Recently found support at the 20-hour moving average at 1.1225 and as of writing trades at 1.1240, up 40 pips for the day. 

The greenback is falling across the board, on the back of an improvement in risk sentiment. The negative tone eased after the beginning of the US session but still remains lower. The US Dollar Index is down 0.20%, hovering around 97.00 while the Dow Jones is up 0.27%. Market’s sentiment is being supported by expectations about a US-China deal and on today’s Chinese and EZ data that helped offset concerns about a global slowdown. 

Int he US, the data came in mixed. The ADP private employment report, ahead of Friday’s NFP, showed the lowest numbers in 18 months. Service sector data confirmed a slowdown although the Markit PMI was revised higher from the preliminary reading. 

Short-term levels to watch 

To the upside, the key level is the 1.1250 area. A firm break above would likely strengthen the euro and clear the way for a test of the next resistance seen at 1.1285 (Mar 7 high), then attention would turn to 1.1300. The bullish intraday tone will remain intact as long as the euro holds on top of the 20-hour moving average currently at 1.1225. Below that level, a slide toward 1.1200 seems likely. The key support continues to be the 1.1175/80 area, a break lower could intensify the bearish outlook. 

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 rising after upbeat German PMI data

EUR/USD is trading around 1.1100, up on the day. German manufacturing PMI surprised with 43.6 and other figures also beat expectations. The ECB minutes are next.

EUR/USD News

GBP/USD stabilizing above 1.2100 ahead of the Johnson-Macron meeting

GBP/USD is trading above 1.2100, steady. After German Chancellor Merkel offered UK PM Johnson 30 days to solve the Irish Backstop problem, Johnson meets French President Macron.

GBP/USD News

USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

USD/CNH: Rallies, confirms falling channel breakout

Another wave of CNH selling could soon hit the market as the pair technical charts are reporting a bullish breakout. For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4H chart.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •