EUR/USD: More downside if 21DMA breaks – OCBC

FXStreet Insights Team FXStreet

Euro (EUR) fell last week, in line with our caution for some 'speed bumps' in the interim. EUR was last at 1.1686 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Risks remain skewed to the downside

"Trump’s announcement of 30% tariff on all imports from EU over the weekend dampened European futures and EUR this morning. But the impact appears somewhat muted. This could be partially mitigated by France announcing plans to increase (from EUR32bn to EUR64bn) and expedite defence spending – double the military budget by 2027 (3 years earlier than initially planned) in response to geopolitical situation."

"PM Bayrou will provide more details on Tuesday. On tariffs, Ursula, president of the European commission said that EU remains ‘ready to continue working towards an agreement’ by the 1 August deadline. EU’s countermeasures (worth about $24.5bn of imports from US) will be delayed until early August and leaders have also prepared a second list of countermeasures that is 'by now agreed to'."

"Bearish momentum on daily chart intact while RSI fell. Risks remain skewed to the downside for now. Next support at 1.1660 levels (21 DMA), 1.1620. If these levels break, then more downside may play out. Next big support at 1.1470 levels (50 DMA). Resistance at 1.1710, 1.1830 levels. Overall, tariff concerns and comments from ECB officials (on pace of EUR gains) may slow EUR’s appreciation but overall, the constructive outlook remains intact."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD stabilizes near 1.3200 following latest rebound

GBP/USD holds steady at around 1.3200 in the European session on Friday after closing in positive territory on Thursday. Still, the cautious market mood makes it difficult for the pair to gather bullish momentum as investors remain focused on US-Iran conflict and the volaility surrounding global technology shares.

EUR/USD rebounds to 1.1400 as USD corrects lower

EUR/USD gains traction in the European session on Friday and rises to the 1.1400 area. The US Dollar (USD) struggles to find demand and helps the pair edge higher as investors keep a close eye on headlines coming out of the Middle East and the action in global technology stocks.

Gold holds above $4,000 but Fed hike bets cap the upside

Gold moves sideways in a tight channel above $4,000 after posting modest gains on Thursday. Nevertheless, the precious metal finds it difficult to gather bullish momentum as markets grow increasingly concerned about a hawkish Federal Reserve policy outlook.

Ripple price clings to $1 as long liquidations deepen bearish trend

Ripple (XRP) trades near the key psychological support level of $1 after losing more than 8% so far this week. CoinGlass liquidation data shows that over 97% XRP long positions were wiped out over the past 24 hours. In addition, derivatives metrics continue to favor the bears.

Asian stock markets plummet as Apple price hike raises inflation concerns, KOSPI dives over 8%

Asian equity markets on Friday are significantly down as price hikes announced by Apple Inc. due to memory chip shortages have prompted fears of high inflation globally and concerns on earning projections of various companies that rely on these sophisticated chips for their final products.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.