EUR/USD consolidates losses after reaching levels under 1.1000
- EUR/USD stabilizes around 1.1000, about to post lowest close two weeks.
- US Dollar among top performers amid risk aversion.
The EUR/USD pair is consolidating daily losses, hovering around the 1.1000 area. The pair bottomed earlier today at 1.0992 and then rebounded, but its recovery was short-lived as Euro quickly found resistance below 1.1010.
The pair erased post-European Central Bank gains and is about to post the lowest daily close since September 3rd and dropped back below the 20-day moving average.
The positive technical outlook for the Euro is gone, and now it points to the downside. Below 1.1000, the next support emerges at 1.0975, followed by 1.0950 and the 1.0920/25 area (YTD lows).
The critical driver today was a stronger US Dollar across the board. The DXY rose 0.45%, having the best performance in weeks. Equity prices are lower across the globe and safe-haven assets higher following the attack on Saudi Arabia’s oil production. Crude oil prices are back near the top, rising more than 10%.
The US Dollar and the Yen were the most demanded currencies, on the back of rising geopolitical risks. Key events ahead now include not only the FOMC meeting (statement to be released on Wednesday), but also Middle East and trade war headlines. Earlier today, rumors circulated about the possibility of tariffs to European cars going into the US.
Data today included the Federal Reserve Bank of New York's Empire State Manufacturing Survey's that showed a larger-than-expected decline from 4.8 to 2.0 (vs. 4.0) in September.
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
