EUR/USD finds bids around 50% Fib level

Omkar Godbole FXStreet Contributor

EUR/USD is seeing a rebound from 1.1264 (50% Fibo of 1.1616-1.0911) as the American Dollar is being offered across the board.

Hovers around 10-DMA

The pair was last seen trading at the 10-DMA level of 1.1272. Bullish exhaustion on Tuesday near last week’s high of 1.1366 was followed by sharp losses, with the pair hitting a low of 1.1245 levels. The losses were largely triggered by a correction in the EUR/GBP cross since the dollar remained on back foot against most majors.

The common currency could be influence d German IFO number due in the European session. Later in the US session, US durable goods print could set the tone in the US dollar ahead of tomorrow’s Jackson Hole event.

EUR/USD Technical Levels

A break above 1.13 (zero figure + 5-DMA) would open doors for 1.1366 (last week’s high). A violation there could force bears to unwind shorts, which therefore could result in a sharp rise to 1.1450 (76.4% of 1.1616-1.0911) levels. On the lower side, a break below 1.1264 (50% Fibo) could yield a re-test of 1.1222 (100-DMA), under which a major support is seen at 1.1144 (50-DMA).

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.