• The pair remains under downside pressure near 1.1300.
  • The greenback, instead, trades in fresh multi-week peaks.
  • Risk appetite remains subdued ahead of US-China trade talks.

The selling mood surrounding the European currency stays well and sound at the beginning of the week and is now dragging EUR/USD closer to the critical support at 1.1300 the figure.

EUR/USD looks to trade

The pair quickly faded the initial bullish attempt to the 1.1330 region and continues to grind lower amidst a tight range and alternating risk appetite trend.

EUR remains under pressure as market participants continue to adjust to the recent forecasts by the European Commission, where it lowered the projections for inflation and economic growth in the region.

Looking ahead, key US-China trade talks are expected to resume on Thursday and Friday in Beijing, although skepticism remains on the rise over the probability of a positive outcome before the 90-day truce deadline on March 1.

What to look for around EUR/USD

Both the ECB and European Commission are now confirming the slowdown in the euro bloc following their recent revised projections for economic growth and inflation, acknowledging at the same time that the ongoing deceleration in fundamentals could be longer than expected. Adding to this picture, Germany could have likely entered into recession in Q4, while the apparent recovery in the autos sector in recent months would not be enough to spark the immediate rebound in the first economy of the bloc. In addition, political concerns remain well and sound following the recent Italy-France dispute with the ‘yellow-vests’ in centre stage ahead of the key EU parliamentary elections in May. All in all, the expected tightening by the ECB appears highly unlikely this year, with the added risks stemming from Brexit and the US-China/US-EU trade spat.

EUR/USD levels to watch

At the moment, the pair is losing 0.03% at 1.1317 and a break below 1.1289 (2019 low Jan.24) would target 1.1269 (monthly low Dec.14 2018) en route to 1.1215 (2018 low Nov.12). On the other hand, the next hurdle emerges at 1.1356 (23.6% Fibo of the September-November drop) seconded by 1.1387 (55-day SMA) and finally 1.1425 (100-day SMA).

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 maintains the red, bears eye 1.1106

The positive momentum of the American currency leads the way among currencies. EUR/USD extends slide below 1.1180 with little in the way toward the yearly low at 1.1106. EU Consumer Confidence and US housing data pending of release.

EUR/USD News

GBP/USD gives up intraday gains, back below 1.2450

The modest advance triggered by Boris Johnson’s victory has been already reversed, as the dollar rules. GBP/USD slowly but steadily approaching to its daily low at 1.2417, as UK data released earlier in the day disappointed.

GBP/USD News

USD/JPY: Greenback gaining ground against Yen above the 108.00 handle

USD/JPY is bouncing from the monthly lows as buyers broke above the 108.00 figure. The levels to beat for bulls are seen at 108.27 and the 108.41 resistances.

USD/JPY News

Gold: Rebounds from $1414 area, retests overnight swing high

With technical indicators on hourly charts recovering from the negative territory, a follow-through buying beyond the current congestion zone might now set the stage for a further intraday appreciating move.

Gold News

Bitcoin fades and gives the lead to Altcoins

ETH/BTC is set up to rise in the short term. XRP can surprise and open up the Altcoin season. Bitcoin goes low and tests important levels.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •