EUR/USD consolidates Trumpcare debacle-led rally to 1.1540

Having peaked at fresh fourteen month tops of 1.1538, the EUR/USD pair has entered a phase of minor-consolidation, as the bulls take a breather before the next leg higher.

EUR/USD awaits ZEW

The bulls paused the latest run higher over the last hours, sending the EUR/USD pair slightly lower towards 1.1520 levels, as the USD sell-off appears to have stalled for the time-being, with investors awaiting fresh cues from the sentiment on the European open.

The USD index, which measures the greenback’s value against a basket of six major currencies, got hammered to fresh ten-month lows of 94.51 after Trump’s Healthcare bill faced rejection by the US Senate once again. The Trumpcare debacle re-ignited concerns over Trump’s presidency and his ability to deliver on the campaign promises.

In the day ahead, risks remains to the upside in EUR/USD, as a fresh round of USD selling is expected, once the European traders hit their desks and react negatively to the Healthcare news. However, it remains to be seen if the spot sustains the upside, as markets believe the rally is overdone and hence, any correction lower would not come as a surprise.

On the data front, we have the ZEW surveys, with the German ZEW release to have a major impact on the Euro, while the US import prices will fill in an otherwise light US docket.

EUR/USD Technical Levels   

According to Karen Jones, Analyst at Commerzbank, “EUR/USD is attempting to break higher: The new high has not yet been confirmed by the daily RSI and we have another 13 count, we will see where it closes today before we decide whether to go with this break higher. Nearby support is provided by the short term uptrend at 1.1340 and the high from mid June at 1.1296, while above here it is bid and there is scope for 1.1616, the May 2016 high and then 1.1713/36 the August 2015 high and long term Fibo.” 

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 securities. 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 Forex 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.