EUR/USD extends slide towards 1.2000 ahead of US ISM, Fed minutes


  • DXY recovery gains traction.
  • 1.2000 support in sight.
  • The US ISM PMI and FOMC minutes hold the key.

The bid tone around the US dollar keeps growing bigger in mid-Europe, now pushing the EUR/USD pair closer towards the 1.20 handle.

EUR/USD erodes nearly 60 pips from 4-month tops

The latest leg lower in the spot can be mainly attributed to the ongoing broad-based US dollar recovery, with the bulls recovering ground further, as we move closer towards the releases of the US ISM manufacturing PMI and Dec FOMC meeting minutes. The latest Fed minutes are is likely to throw fresh light on the Fed’s rate hike path this year.

The EUR/USD pair ignored upbeat German labor market report, which showed that the country’s unemployment rate dropped to a record low while the unemployment change for Dec came in at -29k vs. -13k expected and -20k previous.

According to Haresh Menghani, Analyst at FXStreet, “Later in the day, the December FOMC meeting minutes would influence investors' expectations over the central bank's monetary policy outlook and provide some meaningful momentum ahead of Friday's keenly watched NFP report.”

EUR/USD Technical Levels

Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers Ltd, wrote: “Strong uptrend remains intact and underpinned by weak dollar, showing scope for eventual attack at 1.2092 (2017 high, posted on 08 Sep) break of which to extend current wave C of five-wave sequence from 1.1737 towards its 200% Fibonacci expansion at 1.2150 and 1.2166 (Fibo 50% of larger 1.3992/1.0340 descend). Meanwhile, the pair may extend pullback on overbought daily studies towards initial support at 1.2000 (psychological support/Tuesday's low, with deeper dips seen towards 1.1950 (daily Tenkan-sen) and 1.1922 (rising 10SMA). Buying dips remain favored scenario while 10SMA holds.”

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Next stop emerges at 0.6580

AUD/USD: Next stop emerges at 0.6580

The downward bias around AUD/USD remained unabated for yet another day, motivating spot to flirt with the area of four-week lows well south of the key 0.6700 region.

AUD/USD News

EUR/USD looks cautious near 1.0900 ahead of key data

EUR/USD looks cautious near 1.0900 ahead of key data

The humble advance in EUR/USD was enough to partially leave behind two consecutive sessions of marked losses, although a convincing surpass of the 1.0900 barrier was still elusive.

EUR/USD News

Gold extends slide below $2,400

Gold extends slide below $2,400

Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.

Gold News

Why this week could be explosive for Ethereum

Why this week could be explosive for Ethereum

Ethereum (ETH) is down nearly 1% on Monday as exchanges have begun confirming Tuesday as the launch date for ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.

Read more

What now for the Democrats?

What now for the Democrats?

Like many, I applaud Biden’s decision.  I would have preferred that he’d made it sooner, but there’s still plenty of time for the Democrats to run a successful campaign. In fact, I wish something on the order of a two-month campaign – as opposed to a two-year campaign – were the norm and not the exception. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures