EUR/USD losses momentum after rebounding to 1.1835, remains under pressure


  • US dollar holds onto daily gains, off highs supported by US inflation data.
  • EUR/USD manages to rise back above 1.1800, bearish tone intact.

The EUR/USD tumbled to 1.1791 after the release of US inflation data that showed the highest annual rate since 2008, at 5.4% and above market consensus. The US dollar later pulled back and the pair rose to 1.1835.

During the last hour, the greenback appears to be gaining momentum. As of writing, EUR/USD trades at 1.1810 down for the day, and on its way to the second-lowest daily close since early April.

The bearish pressure will remain intact while under 1.1835. The key support for EUR/USD in the short-term is seen at the July low around 1.1780.

Higher inflation boosts USD

Inflation number from June triggered the rally of the US dollar. Market participants see higher inflation could bring forward expectations of a rate hike from the Federal Reserve.

“We forecast that US headline inflation will stay above 4% through until 1Q22 with core inflation unlikely to get below 3% until the summer of next year”, mentioned analysts at ING. They argue there appears little reason to continue with asset purchases of $120bn per month. “We will look to Jerome Powell’s testimony tomorrow and the August Jackson Hole Conference for hints of an upcoming taper.”

Powell will deliver its semiannual testimony to the Congress on Wednesday. The introductory statement could be released on Tuesday during the American session.

Technical level

EUR/USD

Overview
Today last price 1.1825
Today Daily Change -0.0035
Today Daily Change % -0.30
Today daily open 1.186
 
Trends
Daily SMA20 1.19
Daily SMA50 1.2052
Daily SMA100 1.2004
Daily SMA200 1.2006
 
Levels
Previous Daily High 1.188
Previous Daily Low 1.1836
Previous Weekly High 1.1895
Previous Weekly Low 1.1782
Previous Monthly High 1.2254
Previous Monthly Low 1.1845
Daily Fibonacci 38.2% 1.1853
Daily Fibonacci 61.8% 1.1863
Daily Pivot Point S1 1.1838
Daily Pivot Point S2 1.1815
Daily Pivot Point S3 1.1794
Daily Pivot Point R1 1.1882
Daily Pivot Point R2 1.1903
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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds near mid-1.1600s after German IFO data

EUR/USD continues to trade in the positive territory around 1.1650 as investors don't seem to be paying much attention to the soft German IFO data. The dollar remains on the back foot but losses are limited by rising T-bond yields.

EUR/USD News

GBP/USD drops towards 1.3750 as dollar rebounds

GBP/USD is falling towards 1.3750, undermined by the US dollar bounce,  as the Treasury yields recover ground. UK's Frost hints at compromise on Northern Ireland’s post-Brexit trade rules. BOE-speak, China news in focus. 

GBP/USD News

XAU/USD looks north, with eyes on $1814 and $1820

Gold price eyes a sustained move above $1800 amid USD weakness. Market sentiment remains mixed ahead of a critical week.

Gold News

Crypto markets coil up for an explosive move

Bitcoin price correction seems to be holding above $60,000, but fear of an extended pullback persists. Ethereum price coils up between $3,900 and $4,200, preventing a retracement. Ripple price consolidates in a bullish pennant, suggesting a 26% ascent is likely.

Read more

Wall Street Week Ahead: Huge week of earnings ahead AAPL, MSFT, GOOGL, AMZN, FB

Equity markets remain elevated with more all-time highs on Thursday for the broader S&P 500 while the Dow registered new highs on Wednesday and Thursday. So far late into Friday's session, the markets are seeing some profit-taking to end a solid week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures