The EUR/USD pair failed to break through Friday's multi-week highs resistance and has now retreated back to mid-1.0700s during early NA session.
Spot once again ran through some offers near 1.0780 region, amid modest greenback recovery. In fact, the key US Dollar Index quickly reversed early dip to over 5-week lows, and recovered back above the key 100.00 psychological mark, and has been exclusive driver of the pair's movement on the first trading day of the week.
Meanwhile, hawkish comments from Chicago Fed President Charles Evans provide little bullish impetus for the greenback as it seems to have been negated by Minneapolis Fed Neel Kashkari's concerns over the Fed’s inflation forecasts and slack in the US labor market.
Fed’s inflation forecasts have been wrong – FOMC’s N.Kashkari
No relevant fundamental drivers, in-terms of any market moving economic releases, are due for release on Monday. Hence focus remains on the speech by Chicago Fed President Charles Evans, scheduled later during NY session, ahead of the US President Donald Trump's speech during early Asian session on Tuesday.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet notes, "the 4 hours chart shows that while the 20 SMA has extended below the current level, providing a dynamic support in the 1.0730 region, technical indicators keep retreating within positive territory, with the Momentum nearing its 100 level and the RSI indicator still near overbought readings, all of which maintains the risk towards the upside, but indicates limited buying interest at the time being. The price needs to break above the mentioned high to be able to extend its recovery up to 1.0820, the 50% retracement of the post-US election slump."
"The 1.0730 region, on the other hand, is the immediate support and the level to break to see the pair correcting further lower, although buying interest will likely surge on approaches to the 1.0700 level."
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
Editors’ Picks
GBP/USD remains on the defensive below 1.2450 ahead of UK Retail Sales data
GBP/USD remains on the defensive near 1.2430 during the early Asian session on Friday. The downtick of the major pair is backed by the stronger US Dollar as the strong US economic data and hawkish remarks from the Fed officials have triggered the speculation that the US central bank will delay interest rate cuts to September.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.