EUR/USD: Market may have based longer term, bulls look to the 1.1570, 2019 high


  • EUR/USD has been under pressure in New York as the dollar runs higher. 
  • EUR/USD is currently trading at 1.1282, virtually flat on the day so far having travelled between 1.1245/85.

Its been a busy day for the single currency. There has been a strong correlation to the performance of European stocks which have followed Asian stocks higher with the maintained dovish tone of Powell's testimony and the FOMC minutes the main driver. However, first of all, the ECB minutes showed that the Governing Council is ready to cut interest rates, while Board member B.Coeure said earlier in the day the central bank is concerned about the protracted low inflation in the region. The broad-based USD weakness has reversed where otherwise, with EUR higher by +0.15% into the New York open. The US inflation figures tracked by the Core Consumer Price Index, (CPI), rose above estimates during June: 0.3% inter-month and 2.1% from a year earlier. The CPI prints lifted US yields which have widened the spread differentials vs. their European peers and sunk the euro a touch. 

Powell's second day of testimony has essentially echoed yesterday which had temporarily dented the Dollar's advance leading up to the event, but the Dollar was able to shake off the prospects of a rate cut, considering the US CPI data means that the Fed is unlikely going to need to cut by 50bps and 25bps are already priced in. 

 Below are some key takeaways, per Reuters from today's Q&A:

  • "Businesses are starting to hold back on investment, it has really slowed down here."
  • "We see really weak economic performance in Asia and Europe."
  • "Many of my colleagues on the FOMC have come to the view that a somewhat more accommodative policy may be appropriate."
  • "Bad outcomes have happened when central bank independence is diminished."
  • "We will always do what we think is right for the economy."


The euro is likely to be on the back foot in the absence of any hawkish ECB speeches or data surprises in the EZ and markets continue to price a 10bps in a rate cut by the ECB by the September meeting. However, longer term, should the Fed continue to cut rates and if the trade war backdrop does not improve, the dollar could come back under pressure. Should EUR/USd drift higher, bulls will look 1.1570, as the 2019 high.

EUR/USD levels

"We regard the April and May lows at 1.1110/06 as a turning point and continue to view the market as based longer term and target 1.1990 (measurement higher from the wedge)," analysts at Commerzbank argued. 

EUR/USD

Overview
Today last price 1.1253
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.1251
 
Trends
Daily SMA20 1.1285
Daily SMA50 1.124
Daily SMA100 1.1257
Daily SMA200 1.1328
Levels
Previous Daily High 1.1264
Previous Daily Low 1.1202
Previous Weekly High 1.1373
Previous Weekly Low 1.1207
Previous Monthly High 1.1414
Previous Monthly Low 1.116
Daily Fibonacci 38.2% 1.124
Daily Fibonacci 61.8% 1.1226
Daily Pivot Point S1 1.1213
Daily Pivot Point S2 1.1176
Daily Pivot Point S3 1.115
Daily Pivot Point R1 1.1276
Daily Pivot Point R2 1.1302
Daily Pivot Point R3 1.1339

 

 

 

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD moving one step closer to 1.1000

The shared currency remains under pressure amid dismal local data and persistent demand for the greenback in a risk-averse environment. EUR/USD trading near a daily low of 1.1009.

EUR/USD News

GBP/USD trims early gains, trades in the red

The GBP/USD pair has retreated from its daily high of 1.3105 and now trades marginally lower daily basis near 1.3050, amid dollar’s strength, looming BOE and Brexit.

GBP/USD News

Crypto market: FOMO mode on, the late-comer's doubt

The crypto market opens the trading week by taking advantage of the momentum of the movement that started early Sunday morning. As if it were an established rhythm, this week it is time to go up after going down the previous one, and up again the previous one.

Read more

WTI: Bears going to town with the coronavirus, fresh lows of $52.18 printed

Oil priced are under pressure, extending a drop from just below the $66 handle at the start of his year to fresh lows at $52.18.

Oil News

USD/JPY: Bears lead on the run to safety

Coronavirus getting stronger, infections to continue to rise. Risk-off Monday, an empty macroeconomic calendar exacerbates sentiment trading. USD/JPY to accelerate its decline on a break below 108.65, a critical Fibonacci support level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures