EUR/USD plummets to lows, around mid-1.1800s

Haresh Menghani FXStreet

• USD continues to gain positive traction on surging US bond yields.
• Technical selling below 1.19 handle aggravates the downfall.
• US retail sales match expectations; March figures revised higher.

The EUR/USD pair finally broke down of its European session consolidation phase and tumbled below the 1.1900 handle in the last hour.

The pair extended overnight rejection slide from the vicinity of the key 1.2000 psychological mark and traded with a bearish bias for the second consecutive session on Tuesday. The US Dollar continued gaining positive traction, further supported by resurgent US Treasury bond yields, and kept exerting downward pressure on the major.

The selling pressure remained unabated following the release of US monthly retail sales data, coming in to show a m-o-m growth of 0.3% for April. The positive in-line figure were further complemented by an upward revision of previous month's sales, now showing a growth of 0.8% m-o-m as against 0.6% reported earlier, and stronger than expected Empire State manufacturing index, which rose to 20.1 for May from 15.8 in April.

Meanwhile, possibilities of some short-term trading stops being triggered on a weakness back below the 1.1900 handle could also be one of the factors behind the pair's sharp drop of around 80-pips over the past couple of hours. Currently trading around mid-1.1800s, a follow-through weakness, led by some fresh technical selling, now looks a distinct possibility.

Technical levels to watch

A follow-through weakness would indicate resumption of the pair's prior depreciating slide and accelerate the downfall towards testing the 1.1800 handle. On the flip side, any recovery attempts now seems to confront immediate resistance near the 1.1900 handle and is closely followed by resistance near the 1.1915-20 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.