EUR/USD consolidates Trumpcare debacle-led rally to 1.1540

Dhwani Mehta FXStreet

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.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD holds losses below 1.1650 on renewed USD uptick

EUR/USD is off the low but remains in the red below 1.1650 in European trading on Thursday. The pair faces headwinds from a renewed uptick in the US Dollar amid a negative shift in risk sentiment. Surging energy prices due to the Middle East war keep the bearish pressure intact on the Euro. The US Jobless Claims data are next of note.

GBP/USD stays weak near 1.3350 amid UK stagflation risks

GBP/USD sticks to losses near 1.3350 in the European session on Thursday. The Pound Sterling loses ground amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, while the US Dollar attracts fresh havem demand ahead of the US Jobless Claims data.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Three reasons to be bearish on Bitcoin

Bitcoin is holding up well taking into account the uncertainty stemming from the Middle East. Despite this week’s rally, the long-term outlook remains bearish. Here are three reasons why I think the storm for the largest cryptocurrency isn't over yet.

FX alert: When Energy still writes the macro script the Dollar holds the pen

The market is quietly sliding back into the trade nobody wanted to own, but everyone now has to respect again. The no quick off-ramp trade. Yesterday’s bounce in risk assets already looks less like a turning point and more like a classic relief rally in a market that briefly inhaled before realizing the room was still on fire.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.