- 200-DMA remains a tough nut to crack for the EUR bulls.
- Trade deal doubts offer support to the USD recovery.
- Markets await US Industrial Output and trade updates for fresh impulse.
EUR/USD came under fresh selling pressure over the last hour and eased nearly 10 pips from the Asian range trade seen between 1.1140-1.1150 levels, mainly driven by solid rebound staged by the US dollar vs. its main competitors.
At the press time, the pair has managed to jump off 1.1129 lows, as it looks to re-attempt the 200-DMA barrier, now placed at 1.1153.
EUR/USD weighed down by trade uncertainty?
The US dollar picked up the recovery momentum across the board, courtesy a fresh selling wave caught by the GBP/USD amid resurfacing no-deal Brexit fears, as the UK PM Johnson is likely to set a new deadline to prevent any extension of the Brexit transition period beyond 2020.
Additional strength in the US currency can be attributed to the doubts over the details of the US-China Phase One trade deal, with the Chinese officials not very welcoming about the specifics despite several assurances from the White House. In times of market uncertainty, investors tend to seek safety in the world’s reserve currency, the US dollar.
Meanwhile, in absence of any significant macro news from the Eurozone docket, markets look forward to the US Industrial Production and JOLTS job openings data due later in the NA session. In the meantime, the spot will continue to remain at the mercy of the USD dynamics, as the shared currency shrugs off the recent comments on the EU-US tariffs. However, the ECB policymaker Rehn's dovish comments seem to have collaborated with EUR/USD's latest downtick to daily lows.
EUR/USD Technical levels to watch
|Today last price||1.1139|
|Today Daily Change||-0.0006|
|Today Daily Change %||-0.05|
|Today daily open||1.1144|
|Previous Daily High||1.1159|
|Previous Daily Low||1.1123|
|Previous Weekly High||1.12|
|Previous Weekly Low||1.1054|
|Previous Monthly High||1.1176|
|Previous Monthly Low||1.0981|
|Daily Fibonacci 38.2%||1.1145|
|Daily Fibonacci 61.8%||1.1136|
|Daily Pivot Point S1||1.1125|
|Daily Pivot Point S2||1.1106|
|Daily Pivot Point S3||1.1089|
|Daily Pivot Point R1||1.1161|
|Daily Pivot Point R2||1.1178|
|Daily Pivot Point R3||1.1197|
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.