EUR/USD faces worst weekly loss since November 2016, creates bearish outside-week candle

The EUR/USD is down 1.7 percent from last Friday's close of 1.1767- its worst weekly loss since November 2016.
ECB's dovish taper, fears of a trade war and hawkish Fed rate hike will likely keep the EUR under pressure on the last trading day of the week.
The common currency has created a bearish outside-week candle, signaling the sell-off from 1.2556 has resumed.

Omkar Godbole FXStreet Contributor

Currently, the EUR/USD pair is trading at 1.1567 - down 1.7 percent week-on-week - its worst weekly losses since November 2016.

ECB's Draghi pulled the plug on the QE program yesterday, still, the EUR dropped more than 200 pips as the central bank head pushed out the first rate hike to end 2019. The QE taper gives the EUR an edge over the Japanese Yen but does little to support boost EUR/USD exchange rate as the Fed is planning to hike rates at a faster rate and the ECB is at least 1.5-years away from the rate hike.

Bearish revival

The EUR created a bearish outside-day candle yesterday. Further, the weekly chart also shows a bearish outside-week candle, indicating the rally from the recent low of 1.1510 has ended and the bears have regained control. So, EUR/USD could have a relook at 1.15 and could possibly break lower to 1.1412 (200-week moving average)

EUR/USD Technical Levels

Resistance: 1.1585 (resistance on hourly chart), 1.1673 (descending 50-hour moving average), 1.1690 (5-day moving average).

Support: 1.1510 (May 29 low), 1.1423 (100-week moving average), 1.1412 (200-week moving average).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Low
1H	Bullish	Oversold	Shrinking
4H	Strongly Bearish	Oversold	High
1D	Bearish	Neutral	Expanding
1W	Bearish	Neutral	Expanding
Updated Jun 15, 04:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.