EUR/USD nears a key 1.1750-80 resistance zone ahead of US GDP release

The near 90-degree rally in the EUR/USD from the Aug. 15 low of 1.1301 has neared a key resistance zone of 1.1750-1.1780.
The path of least resistance is on the higher side, the moving averages indicate, so, the spot look set to take out the resistance zone.
The upside break may remain elusive if the lack of progress in the US-China trade talks hurts risk assets and the US A2 GDP is revised higher.

Omkar Godbole FXStreet Contributor

The EUR/USD's pullback from the 28-day high of 1.1733 clocked yesterday, indicates the "V-shaped" rally from the Aug. 24 low of 1.1301 has likely run out of steam near the 1.1750-1.1780 resistance range.

At press time, the pair is trading at 1.1690. The 100-day moving average (MA) is located at 1.1754 and the 38.2 percent Fibonacci retracement of the yearly high and low is seen at 1.1780.

A convincing break above the resistance zone of 1.1750-1.1780 will keep the rally going.

The bullish breakout would happen if the US second-quarter GDP is revised lower today, reinforcing the dovish Fed expectations.

Further, the risk assets need to continue rising, although the lack of progress in the trade negotiations between the US and China could complicate matters for the risk sentiment and the common currency.

Technically speaking, the pair is more likely to find acceptance above the 1.1750-1.1780 resistance zone as the 100-day moving average (MA) is located above the 200-hour MA, suggesting the path of the least resistance is to the higher side.

EUR/USD Technical Levels

Resistance

1.1709 (23.6% Fib R of 1.10341-1.2556),

1.1755 (100-day MA)

1.1780 (38.2% Fib R of 2018 high/low)

Support

1.1676 (50-hour MA)

1.1654 (support as per the hourly chart)

1.1627 (100-hour MA)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD eyes 100-SMA hurdle near 0.7035 as hawkish RBA counters firmer USD

AUD/USD regains positive traction on Tuesday and climbs to 0.7030 during the Asian session, reversing the previous day's corrective slide from a one-month high as hawkish RBA rate expectations continue to support the Aussie. Spot prices, however, remain below the 100-day SMA pivotal resistance amid a firmer US Dollar as traders brace for Australia’s September CPI report on Wednesday ahead of the Fed rate decision.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold bears flirt with $4,000 amid sustained USD buying ahead of FOMC decision

Gold meets with a fresh supply during the Asian session, stalling the previous day's modest bounce from the vicinity of a three-month low amid a firmer US Dollar. The precious metal, however, defends the $4,000 psychological mark as traders now seem hesitant and opt to wait for the outcome of the two-day FOMC policy meeting on Wednesday.

Pi Network stalls as weak crypto sentiment caps recovery

Pi Network (PI) holds steady above $0.0760 at press time on Tuesday, stalling after a roughly 2% rebound the previous day. The broader market's weak sentiment and reduced trading volume weigh on the PI token. The technical outlook is bearish, with price capped below a long-term resistance trendline and weak momentum.

France tests the Euro's nerve: What the OAT spread is telling FX traders

France's 10-year borrowing premium over Germany hit its widest since the 2011 debt crisis last week. With public spending above 57% of GDP, unrest on the streets and a presidential election next spring, cuts look unlikely. If Paris cannot trim, the bill may be paid quietly through financial repression.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.