• Sees post-ECB/ US GDP consolidation.
  • Yield differential holds the key.
  • FOMC and NFP in focus.

The EUR/USD pair kept its recovery mode intact in Asia, although failed to regain the key support-turned-resistance located near 1.1620 levels, as markets remain cautious stepping into a Big week ahead.

EUR/USD: German data on tap

The spot remains better bid so far this session, as the US dollar remains on the back foot across its main competitors, with the US rates broadly lower on reports of Trump leaning towards Powell as the next Fed Chair. Markets see Jerome Powell as a less hawkish candidate, thus tempering US dollar’s advance seen last week.

However, the recovery gains in EUR/USD appears limited, as the US-German yield differential continue to remain USD-supportive, especially after the ECB’s dovish taper and upbeat US Q3 GDP, which almost sealed in a Dec Fed rate hike.

Looking ahead, the major looks forward to the FOMC decision and NFP report due later this week for the next direction on the pair. In the meantime, the German retail sales and CPI alongside the Fed’s preferred inflation gauge, core PCE price index, will be closely eyed for fresh trading impetus later on Monday.

Also, in focus will remain the political developments around Spain, after the Spanish government sacked Catalonia’s regional government dissolved the Catalan parliament while calling a snap election in December.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet explained: “Shorter term and according to the 4 hours chart, the pair seems overstretched towards the downside, with technical indicators within extremely oversold territory, and the price far below its moving averages, favouring also a new leg lower, although an upward corrective movement can't be dismissed. Still, as long as the price remains below the mentioned 1.1660 level, chances are towards a test of the 1.1460 region, a major resistance area between 2015 and 2017. Support levels: 1.1620 1.1585 1.1550 Resistance levels: 1.1720 1.1770 1.1825.” 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD slumps toward 1.0150 after US NFP data

EUR/USD slumps toward 1.0150 after US NFP data

EUR/USD came under heavy bearish pressure and dropped toward 1.0150 in the American session on Friday. The data from the US showed that Nonfarm Payrolls rose by 528K in July, compared to the market expectation of 250K, and provided a boost to the greenback.

EUR/USD News

GBP/USD extends slide toward 1.2000 amid DXY rally

GBP/USD extends slide toward 1.2000 amid DXY rally

GBP/USD declined sharply toward 1.2000 on Friday after the impressive US July jobs report triggered a dollar rally. Nonfarm Payrolls grew at a much stronger pace than expected and annual wage inflation stayed unchanged at 5.2%, reviving hawkish Fed bets.

GBP/USD News

Gold plunges toward $1,770 amid surging yields

Gold plunges toward $1,770 amid surging yields

Gold turned south in the second half of the day on Friday and fell toward $1,770. After the US data showed Nonfarm Payrolls rose by 528,000 in July, the benchmark 10-year US Treasury bond yield gained more than 6%, weighing heavily on XAU/USD.

Gold News

Cardano price fractal strikes again per our prediction, here’s what’s next for ADA

Cardano price fractal strikes again per our prediction, here’s what’s next for ADA

Cardano price is ready to rally after triggering the same pattern for the fourth time in the last two months. This development could provide buyers and traders with a quick and easy setup to capitalize on.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures