EUR/USD drops to test 1.1900 as US dollar rebounds amid risk-aversion


  • EUR/USD retreats from two-week tops, as USD bulls regain control.
  • The spot recaptures the 200-DMA but upside capped by a pullback in US rates.
  • Bullish RSI still keeps the buyers hopeful, with eyes on 50-DMA.

EUR/USD is retreating further from two-week highs of 1.1927, as the bears test the 1.1900 support area amid resurgent haven demand for the US dollar whilst the Treasury yields recover.

The relentless rise in coronavirus cases across Asia, concerns over the side-effects of the AstraZeneca vaccine and mixed Chinese inflation data spook investors, as they run for safety in the US dollar. The Treasury yields also attempt a bounce after Fed Chair Jerome Powell’s dovish comments-induced slide.

The EUR traders now look forward to a slew of second-tier macro news from the Eurozone, including the Industrial Production data. Meanwhile, the US dollar price action may continue to influence the pair ahead of the US Producers Price Index (PPI) release later on Friday.

EUR/USD: Technical outlook

 

EUR/USD: Daily chart

 

The near-tern technical perspective appears constructive, as observed on the daily chart. EUR/USD recaptured the 200-daily moving average (DMA) at 1.1894 on Thursday, as the 14-day Relative Strength Index (RSI) pierced through the midline from below.

The technical setup remains in favor of the bulls, at the moment, despite the pullback in the spot from higher levels.

Therefore, the EUR buyers continue to aim for the 50-DMA resistance at 1.1969 so long as the 200-DMA support holds.

A sustained break below the latter could expose the horizontal 21-DMA at 1.1850.

To conclude, the upside appears more compelling for the main currency pair, with investors likely to resort to bargain buying at lower levels.

EUR/USD: Additional levels

EUR/USD

Overview
Today last price 1.1905
Today Daily Change -0.0006
Today Daily Change % -0.05
Today daily open 1.1913
 
Trends
Daily SMA20 1.1848
Daily SMA50 1.1974
Daily SMA100 1.2055
Daily SMA200 1.1894
 
Levels
Previous Daily High 1.1927
Previous Daily Low 1.1861
Previous Weekly High 1.1794
Previous Weekly Low 1.1704
Previous Monthly High 1.2113
Previous Monthly Low 1.1704
Daily Fibonacci 38.2% 1.1902
Daily Fibonacci 61.8% 1.1886
Daily Pivot Point S1 1.1873
Daily Pivot Point S2 1.1834
Daily Pivot Point S3 1.1807
Daily Pivot Point R1 1.194
Daily Pivot Point R2 1.1967
Daily Pivot Point R3 1.2007

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retains weekly gains trades above 1.2000

EUR/USD peaked at 1.2079, now stable in the 1.2030 region. The shared currency holds on to recent gains despite renewed demand for its American rival.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD clings to modest gains around $1,780 despite USD strength

The XAU/USD gained traction in the early American session and climbed to a daily high of $1,780. Although the greenback started to gather strength in the second half of the day, the pair stayed relatively resilient and was last seen rising 0.35% on the day at $1,778.

Gold News

WeWork and Venmo join the Bitcoin craze while prices consolidate

The announcement by WeWork that it will begin accepting payments in select cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Paxos, and several others, is another sign of adoption and follows the decision by Tesla to do the same

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures