EUR/USD hovers below 1.12, eyes data and Fed speak

Omkar Godbole FXStreet Contributor

EUR/USD is working hard to stay above 1.12 levels amid broad based USD recovery in Asia following a two-day rally that saw prices jump from 1.1123 to 1.1257.

Offered at trend line hurdle

The common currency ran into offers yesterday around the resistance of the falling trend line drawn from Sep 8 high and Sep 15 high. Furthermore, the spot failed near Pivot level in the Asian session. Consequently, prices slipped to a low of 1.1194 and were last seen trading just below 1.12 handle.

EUR traders eye preliminary manufacturing ahead of speeches from Fed’s Harker, Mester and Lockhart.

EUR/USD Technical Levels

A break below immediate support of 1.1171 (10-DMA) would open doors for 1.1150 (200-DMA). A violation there could force unwinding of long position and yield a quick fire drop to 1.1070 (Aug 9 low). On the other hand, a break above 1.1212 (Asian session low) would shift risk in favor of a rise to 1.1248 (Pivot R1). Next major resistance is seen at 1.1284 (Sep 15 high).

Author

Omkar Godbole

FXStreet Contributor

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

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold retakes $4,400 as receding Fed hike bets undermine USD

Gold is looking to build on Friday's bounce from the $4,300 neighborhood as reduced bets on an immediate Fed rate hike keep US Dollar bulls on the defensive and support the non-yielding bullion. However, the US-Iran standoff could limit deeper USD losses, warranting caution before positioning for the resumption of the XAU/USD pair's recent uptrend to its highest level since June 5.

BTC/USD price outlook: Bitcoin navigating between arc levels. Potential continuation toward $58,000

Overview: Based on Arc Cycle Analysis applied to the 1D chart, Bitcoin is trading between the 0.5 Arc and 0.618 Arc within the current Arc Cycle. Price has cleared the 0.5 Arc and is progressing toward the 0.618 Arc, suggesting continued movement toward the next Arc boundary. Metric

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.