EUR/USD Price Analysis: Euro retreats from 1.0925 as Fed vs ECB battle heats up

EUR/USD takes offers to refresh intraday low, down for the third consecutive day.
ECB policymakers keep suggesting further rate hikes and so do Fed clues.
RSI conditions suggest bottom-picking, multiple supports challenge Euro bears.
Bulls remain cautious below 1.1100 while 1.0970 guards immediate recovery.

Anil Panchal FXStreet

EUR/USD drops for the third consecutive day amid early Tuesday morning in Europe, refreshing intraday low near 1.0920 by the press time. In doing so, the Euro pair justifies the failure to cross the 1.0970-60 area in the last week, as well as a three-day-old falling resistance line.

That said, the Euro pair fails to justify hawkish signals from the European Central Bank (ECB) Officials amid the Federal Reserve (Fed) updates which have been suggesting higher rates of late.

Also read: EUR/USD prods bears above 1.0900 as ECB hawks gain more acceptance than the Fed ones

It’s worth noting that the multiple tops marked around 1.1100 in April and May also highlight the Euro pair’s inability to defend the bullish bias. However, the below 50 conditions of the RSI (14) line challenge the EUR/USD bears.

The same highlights descending support line from Friday, around 1.0900 as an immediate key level to watch for the Euro bears.

Following that, a convergence of the 100-Hour Moving Average (HMA) and a one-week-old ascending trend line, near 1.0890, will challenge the EUR/USD bears.

It’s worth noting that, an upward-sloping support line from June 07, close to 1.0850 at the latest, acts as the last defense of the EUR/USD buyers, a break of which will confirm the short-term bearish trend of the major currency pair.

On the contrary, a downward-sloping resistance line from Friday, near 1.0920 precedes the latest peak of 1.0970 to restrict the immediate EUR/USD upside.

However, a clear break of the 1.0970 won’t hesitate to challenge the 1.1000 psychological magnet and then aim for the yearly highs marked near the 1.1100 zone.

EUR/USD: Hourly chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.092
Today Daily Change	-0.0002
Today Daily Change %	-0.02%
Today daily open	1.0922

Trends
Daily SMA20	1.077
Daily SMA50	1.088
Daily SMA100	1.0808
Daily SMA200	1.0546

Levels
Previous Daily High	1.0946
Previous Daily Low	1.0907
Previous Weekly High	1.0971
Previous Weekly Low	1.0733
Previous Monthly High	1.1092
Previous Monthly Low	1.0635
Daily Fibonacci 38.2%	1.0922
Daily Fibonacci 61.8%	1.0931
Daily Pivot Point S1	1.0904
Daily Pivot Point S2	1.0886
Daily Pivot Point S3	1.0865
Daily Pivot Point R1	1.0943
Daily Pivot Point R2	1.0964
Daily Pivot Point R3	1.0982

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD remains offered below 1.3600

GBP/USD resumes its decline, reversing Tuesday’s bullish attempt and breaking below 1.3600 the figure on Wednesday. Cable’s marked pullback follows a firm advance in the Greenback as investors continue to assess latest US data as well as the geopolitical landscape.

EUR/USD bounces off lows, retests 1.1650

EUR/USD now manages to regain some balance, trimming earlier losses and reclaiming the mid-1.1600s in the latter part of Wednesday’s NA session. The pair’s retracement comes on the back of a solid performance of the US Dollar, as market participants gear up for upcoming key US data releases and Chair Warsh’s speech at the Jackson Hole Symposium.

Gold puts $4,600 to the test amid USD gains

Gold now faces some renewed downside pressure and seems to challenge the key $4,600 mark per troy ounce on Wednesday. That said, the yellow metal’s correction comes after three daily upticks in a row, fading at the same time the recent move to fresh tops around $4,700. The stronger US Dollar and a decent rebound in US Treasury yields across the curve continue to weigh on bullion.

Bitcoin recovery stalls near $80,000 as ETF inflows mount, whale demand strengthens

Bitcoin price is trading in the green on Wednesday, holding above $78,000 while struggling to extend its recovery above the $80,000 mark. Institutional demand is strengthening, with steady inflows and BlackRock’s tax-deferred Bitcoin-to-ETF swap volume reaching $5 billion.

Nvidia: How will the company perform as its switches from a chip maker to an AI finance house?

The main event for markets this week takes place this evening, after US markets close. Nvidia, the AI giant, will report results for last quarter. Another monster report is expected. Revenues could come in above $92bn, and earnings per share could come in at $2.09.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.