EUR/USD: Last week's indecisive market makes this week's close pivotal

The EUR/USD market ended no an indecisive note last week, hence, this week's close will likely set the tone for the next big move in the EUR/USD.
German/Eurozone may have seen the last of the negative news.
Eurozone May PPI & retail sales are data risk today, ECB's Praet also a risk.

Omkar Godbole FXStreet Contributor

The EUR/USD pair created a doji candle last week, signaling indecision in the marketplace and this week's close will likely set the tone for the next move in the common currency.

A bullish reversal would be confirmed if the EUR/USD pair closes above 1.1852 (previous week's high) on Friday. On the other hand, a weekly close below 1.1508 (previous week's doji candle low) would signal a continuation of the sell-off from the February high of 1.2556.

Europe-Germany may have seen last of any negative news for now

Germany's Christian Social Union (CSU) party reached a deal with Chancellor Merkel’s Christian Democrats (CDU) over illegal immigration, and the resignation threat has been withdrawn, according to Reuters. The fading political uncertainty could assuage downside pressure around the common currency.

Further, an above-forecast Eurozone producer price index (PPI) reading and retail sales number could put a bid under the common currency. The EUR traders will also watch out for comments from ECB's Praet.

EUR/USD Technical Levels

Resistance: 1.1690 (weekly high), 1.1852 (previous week's doji candle high), 1.1956 (10-week moving average).

Support: 1.1508 (downward sloping 50-week moving average), 1.1448 (50% Fib R of 1.0341-1.2556), 1.14 (psychological support).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Neutral	Low
4H	Strongly Bearish	Neutral	Low
1D	Strongly Bearish	Neutral	Expanding
1W	Bearish	Oversold	High
Updated Jul 3, 03:30 GMT

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 hangs close to 1.3500, awaits fresh impetus from US CPI

GBP/USD keeps its range around 1.3500 in Wednesday's European trading. The pair continues to trade with caution as the US Dollar (USD) holds ground ahead of a crucial US consumer inflation report. Investors are watching this upcoming reading closely, as it is expected to play a major role in shaping the Federal Reserve’s next interest rate decision and the USD valuation.

EUR/USD consolidates below 1.1550 ahead of US CPI

EUR/USD struggles to gain any meaningful traction and holds steady around 1.1550 in the European trading hours on Wednesday, maintaining a familiar range held over the past week or so. Traders keenly await the release of the key US inflation data and further developments surrounding the Middle East crisis before placing fresh directional bets.

Gold retakes $4,400, eyes two-month high as traders look to US CPI for Fed hike cues

Gold attracts fresh buyers during the Asian session on Wednesday and climbs back above the $4,400 mark, closer to its highest level since June 5, which was touched the previous day. Traders now look to the US Consumer Price Index report for more cues about the US Federal Reserve's future policy path amid inflation risks stemming from volatile oil prices.

Zcash below $500 puts bulls under pressure, 100-day EMA in focus

Zcash price trades below $500 at press time on Wednesday, holding steady after two consecutive days of losses. Retail demand for the privacy coin is mixed as the broader market awaits the release of US Consumer Price Index data for July later in the day.

US CPI data set to show softer inflation in July as markets reassess Fed rate hike bets

The US Bureau of Labor Statistics will publish the July Consumer Price Index data on Wednesday. The report is expected to show a small decline in consumer inflation and core inflation. The monthly CPI is forecast to rise by 0.1%, following the 0.4% decrease recorded in June, while the annual reading is seen retreating to 3.4% from 3.5% reported in the previous month.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.