- EUR/USD is trading -0.17% lower but the pair was 0.55% lower at one stage on Thursday.
- The pair caught a bid close to 1.18 and has now settled 37 pips higher.
EUR/USD 4-hour chart
EUR/USD has bounced back from the session low to trade around 45 pips from the low point of the day. There has been lots of data but the risk theme seems to suggest that traders and investors are worried about the US government fiscal deal. Trump could come out at any moment and suggest a deal is in the works as he doesn't like to see the stock markets fall. There was also lots of data on Thursday and the initial jobless claims narrowly missed analyst expectations. The US Markit Services PMI for August printed at 55.0 vs the expected 54.7 but this did not do much to change the risk tone. Lastly, the market will be focusing on tomorrow non-farm payroll print the latest analyst consensus is for 1.4 million jobs to be added.
Looking at the chart, the orange line is the key support. The level represents the consolidation low and a break of the zone could suggest more weakness is to come. The green line near 1.18 is where the price bounced today. Now there has been some support at that level the red resistance zone just under 1.19 could be important. A break above 1.19 could mean the recent uptrend is back on. Lastly, the black trendline connecting the lows of the consolidation point is also one to watch. A break could suggest further weakness may be on the horizon.
The indicators are looking very bearish at the moment the MACD histogram is red and the signal lines have just dipped below the midpoint. The Relative Strength Index is very close to the oversold area but interestingly the price has made a higher low and the indicator has made a lower low wave. This is called a bullish failure swing and could mean the price might take a breather and move back up.
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.