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EUR/USD hits fresh monthly lows, attention turns to FOMC meeting next week

  • EUR/USD reaches a three-week low at 1.2724.
  • Market sentiment weighs on the EUR/USD as flows flew to the safe-haven USD.
  • The US Dollar Index rises above 93.00 despite weak US consumer sentiment data.

EUR/USD keeps sliding for the second day in a row, exchanging hands at 1.1728 down 0.30% on the day at the time of writing. After a stellar US Retail Sales report on Thursday, the EUR/USD pair is trading at three-week lows, on broad US dollar strength. 

The US Dollar Index (DXY) is at three-week highs

The market mood is in risk-off mode, with US stock indices sliding between 0.26% and 1.19% and bond yields rising. The US 10-year benchmark rate is at 1.368%, up almost four basis points on Friday, underpinning the greenback. The US Dollar Index is up 0.33%, sitting at 93.17.

During the European session, the Eurozone Core Consumer Price Index (YoY) rose by 1.6%, in line with expectations. Meanwhile, the Core CPI for August (MoM) edged higher 0.3% as foreseen.

Across the pond, the US University of Michigan Consumer Sentiment increased slightly to 71 in September versus 70.3 in the previous month, although it was worse than the 72.2 expected. The report attributed the declines to higher prices, as consumers expect the inflation rate to rise 4.7%, matching the highest since 2008.

Investors’ focus turns to next week events. The Federal Open Market Committee will discuss monetary policy issues, being the QE reduction the spotlight of the statement.

Key technical levels to watch

EUR/USD

Overview
Today last price1.1728
Today Daily Change-0.0037
Today Daily Change %-0.31
Today daily open1.1765
 
Trends
Daily SMA201.1804
Daily SMA501.1799
Daily SMA1001.193
Daily SMA2001.1993
 
Levels
Previous Daily High1.1821
Previous Daily Low1.175
Previous Weekly High1.1886
Previous Weekly Low1.1802
Previous Monthly High1.19
Previous Monthly Low1.1664
Daily Fibonacci 38.2%1.1777
Daily Fibonacci 61.8%1.1794
Daily Pivot Point S11.1737
Daily Pivot Point S21.1708
Daily Pivot Point S31.1666
Daily Pivot Point R11.1807
Daily Pivot Point R21.1849
Daily Pivot Point R31.1877

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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