EUR/USD in bullish consolidation above 1.1800 amid risk-off mood


  • EUR/USD is holding the recent rebound from three-month lows.
  • Covid concerns, China’s growth slowdown spook investors, lift the USD.
  • Powell-led weaker yields cushion the downside ahead of fresh US data.

EUR/USD is alternating between gains and losses, consolidating the recent recovery above 1.1800, as the US dollar attempts a bounce amid worsening market mood.

The greenback licks its wounds, finding some support from the risk-off sentiment, in light of the looming concerns over the Delta covid variant contagion and slowing Chinese economic growth. The Chinese economy expanded by 7.9% YoY in Q2, although fell short of the estimate of 8.1% growth.

On Wednesday, the main currency pair hit the lowest levels since April at 1.1772 amid a broadly stronger US dollar, as hotter inflation data spurred Fed’s hawkish expectations.  However, in the American session, EUR/USD staged an impressive bounce after Fed Chair Jerome Powell poured cold water on hopes of potential monetary policy normalization.

Powell, in his Congressional testimony, signaled that withdrawal of monetary policy support is still distant, as the economic recovery is not there yet. Traders now await day 2 of Powell’s testimony for fresh trading incentives.

In the meantime, a slew of US macro news and broader market sentiment will have a significant impact on the major, as the downside remains cushioned by the persisting weakness in the Treasury yields.

EUR/USD: Technical levels

“A clear break of the 1.1860 figure, comprising the stated wedge’s upper line, becomes necessary for the EUR/USD bulls to aim for a 200-SMA level of 1.1985. Meanwhile, pullback moves will recall the 1.1800 round figure to the chart before testing the bullish formation’s support line, around 1.1765,” FXStreet’s Analyst Anil Panchal explains.

EUR/USD: Additional levels

EUR/USD

Overview
Today last price 1.1832
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.1836
 
Trends
Daily SMA20 1.1875
Daily SMA50 1.2043
Daily SMA100 1.1997
Daily SMA200 1.2006
 
Levels
Previous Daily High 1.1839
Previous Daily Low 1.1772
Previous Weekly High 1.1895
Previous Weekly Low 1.1782
Previous Monthly High 1.2254
Previous Monthly Low 1.1845
Daily Fibonacci 38.2% 1.1813
Daily Fibonacci 61.8% 1.1797
Daily Pivot Point S1 1.1793
Daily Pivot Point S2 1.1749
Daily Pivot Point S3 1.1726
Daily Pivot Point R1 1.1859
Daily Pivot Point R2 1.1882
Daily Pivot Point R3 1.1926

 

 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Indecisive above 1.1700 as Fed tapering looms

EUR/USD retreats towards 1.1700, teasing monthly low for third straight day. Market sentiment improves over Evergrande, US debt limit extension. ECB policymakers cite inflation risks. Fed remains in focus, as it is expected to provide hints on tapering timing.

EUR/USD News

GBP/USD remains defensive near 1.3650 amid steady USD, Fed eyed

GBP/USD trades virtually unchanged around 1.3650 following the footprint of the previous session. Supply-chain bottlenecks, higher gas prices limited gains for sterling. US dollar remains elevated near 92.30 ahead of the Fed decision.

GBP/USD News

Gold sees elusive recovery toward $1,780, Fed eyed

Gold prices print minute gains on Wednesday and lack conviction to break $1,780 convincingly due to a sudden uptick in the greenback following a show from the Bank of Japan (BOJ). FOMC volatility, improved risk sentiment exert pressure on the higher side.

Gold News

MATIC price at make or break point as Polygon launches $2 million bounty program

MATIC price has experienced a massive downswing over the past four days and seems to have found temporary relief. If the buyers step in, there is a chance of a minor rally, but failing to do so might trigger a further descent.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question investors have for the Federal Reserve in its all-important September meeting. The bank buys $120 billion worth of bonds every month and it is set to reduce the pace at some point.

Read more

Forex MAJORS

Cryptocurrencies

Signatures