EUR/USD: On the defensive after Friday's drop

EUR/USD logged its biggest single-day loss in two weeks on Friday.
The pair risks extending losses to key trendline support.
With US markets closed, the pair may witness some moves on German PPI data.

Omkar Godbole FXStreet Contributor

EUR/USD is looking weak, having registered its biggest single-day decline in over two weeks on Friday.

The pair fell 0.43%, its biggest single-day loss since Jan. 2, signaling an end of the minor bounce from the Jan. 10 low of 1.1085 and a resumption of the sell-off from the Dec. 31 high of 1.1239.

The single currency, therefore, risks falling to the support at 1.1063 – the support of the trendline connecting lows seen on Oct, 1 and Nov. 29.

The drop to key support, however, may not happen if the German Producer Price Index (PPI), due at 07:00 GMT, betters estimates.

Indeed, the PPI has rarely moved markets in the past. However, with the US closed on account of Martin Luther King's birthday, trading volumes are likely to be weak. The pair, therefore, could witness erratic moves on PPI figures.

The German Bundesbank's monthly report is also scheduled for release on Monday and could influence the pair. At press time, EUR/USD is trading near 1.1095.

EUR/USD under 1.11 is a clear buying opportunity - Scotiabank

Technical levels

EUR/USD

Overview
Today last price	1.1096
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.1093

Trends
Daily SMA20	1.1143
Daily SMA50	1.1098
Daily SMA100	1.1069
Daily SMA200	1.1137

Levels
Previous Daily High	1.1143
Previous Daily Low	1.1086
Previous Weekly High	1.1173
Previous Weekly Low	1.1086
Previous Monthly High	1.124
Previous Monthly Low	1.1002
Daily Fibonacci 38.2%	1.1108
Daily Fibonacci 61.8%	1.1121
Daily Pivot Point S1	1.1072
Daily Pivot Point S2	1.105
Daily Pivot Point S3	1.1015
Daily Pivot Point R1	1.1129
Daily Pivot Point R2	1.1164
Daily Pivot Point R3	1.1186

Author

Omkar Godbole

FXStreet Contributor

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

GBP/USD clings to recovery gains near 1.3550 after UK CPI data

GBP/USD holds recovery near 1.3550 in European trading hours on Wednesday. The UK annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected. Mixed UK inflation data failed to provide any impetus to the British Pound.

EUR/USD advances to 1.1600 as USD slips ahead of Fed Minutes

EUR/USD stretches higher toward 1.1600 in Wednesday's European session. The US Dollar resumes its downside as weak US economic data weigh on expectations of tighter Federal Reserve policy. Traders will take further cues from ECB President Christine Lagarde’s speech and the FOMC Minutes later in the day.

Gold surrenders modest intraday gains; trades below $4,450 as FOMC Minutes loom

Gold surrenders modest intraday gains and trades near the lower end of its daily range, below $4,450 heading into the European session. Despite renewed US Dollar selling, bulls seem hesitant and await more cues on the US Federal Reserve's future policy path before placing fresh directional bets on the non-yielding yellow metal.

Shiba Inu's recovery hinges on key support

Shiba Inu recovers slightly, trading at $0.0000044, after finding support around the critical level earlier this week. The dog-themed meme coin shows improving sentiment as social dominance rises, funding rates turn positive, and bullish traders increase their long positions. On the technical side, SHIB suggests a potential recovery if it holds above the key $0.0000043 level.

Inflation prints and FOMC Minutes take centre stage

In the US, the minutes from the FOMC's July meeting are released this evening. Markets are looking for a more detailed sense of the committee's thinking beyond Kevin Warsh's limited forward guidance. Three participants voted in favour of a hike, and since then, several others have flagged willingness to support a hike if warranted by incoming data.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.