EUR/USD holds near 1.1050, consolidates weekly gains


  • DXY holds to significant losses, at weekly lows offering support to EUR/USD.
  • Federal Reserve announces it will start buying Treasury bills. 

The EUR/USD is hovering around 1.1050, consolidating modest daily gains. The Euro lost strength during the American session while the US dollar remains under pressure. 

Consolidating weekly gains 

“Risk-on has taken over the financial sphere these last couple of days, on encouraging news coming from the two big turmoil fronts, Brexit and the trade war between the US and China. The EUR/USD pair has advanced for a second consecutive week, recovering the 1.1000 threshold and rallying to 1.1062, on hopes both ships will reach good port”, explained Valeria Bednarik, Chief Analyst at FXStreet. According to her, the recovery is set to continue in the upcoming days.

From the weekly low, the EUR/USD rose more than a hundred pips. The key driver so far has been a slide of the US Dollar across the board. The DXY is having the worst week since August. As of writing, it stands at 98.31, down 0.40% for the day. 

Attention continues to be on the US/China trade talks. Market participants await for headlines. A positive outcome could reduce Federal Reserve rate cut expectations. The US central bank just announced it will begin buying $60B per month in Treasury bills at least until the second quarter of next year. 

Levels to watch 

Earlier today, the pair peaked at 1.1062, reaching the highest level in three weeks and then pulled back finding support above 1.1030 and also on top of the 20-hour moving average. It rebounded rising back to the 1.1050 zone. 

So far today, it tested the 1.1060 area several times but failed to break higher. Above daily highs, the next resistance is seen around 1.1075 (Sep 17 high) and 1.1110/05. On the flip side, support will likely emerge at 1.1030/35 (Oct 10 high) and 1.1000 (Oct 3 & 7 high / Oct 11 low). 
 

EUR/USD

Overview
Today last price 1.1049
Today Daily Change 0.0038
Today Daily Change % 0.35
Today daily open 1.1011
 
Trends
Daily SMA20 1.0987
Daily SMA50 1.1051
Daily SMA100 1.1145
Daily SMA200 1.1223
 
Levels
Previous Daily High 1.1034
Previous Daily Low 1.098
Previous Weekly High 1.1
Previous Weekly Low 1.0879
Previous Monthly High 1.111
Previous Monthly Low 1.0885
Daily Fibonacci 38.2% 1.1013
Daily Fibonacci 61.8% 1.1001
Daily Pivot Point S1 1.0982
Daily Pivot Point S2 1.0954
Daily Pivot Point S3 1.0928
Daily Pivot Point R1 1.1037
Daily Pivot Point R2 1.1062
Daily Pivot Point R3 1.1091

 

 

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