EUR/USD probing 1.2260 while the technical picture is uncertain

  • Euro is trading down after ZEW survey slumps to its lowest since 2016.
  • DXY is strong, trading back above the 90 mark. 

The EUR/USD is trading at around 1.2260 down 0.60% on the day as the US dollar is having a boost jumping from 89.86 to 90.32 in the US session and currently consolidating at around 90.20.

The Fed started its two-day policy meeting on Tuesday and a rate decision will be due on Wednesday at 18.00 GMT. In the meantime, the yield on the 2-year Treasury note climbed to a nine-year high and gold edged lower.

Earlier in the EU session, the data from the ZEW survey has not been exactly rosy as the index dropped to 5.1 from 17.8 in February and 20.4 in January, falling to its lowest level since late 2016. The stock market deceleration along with bond yields and a weaker Euro and the upcoming political event have likely tempered investors’ appetite in the short term but not changed the overall picture according to ING.

All eyes are on the FOMC rate decision on Wednesday where Powell will offer more information about the path of rate hikes throughout 2018. A 25bps rate increase is now virtually a done deal amongst most market participants with a probability of 94.4% according to the CME Group Fed watch. 

EUR/USD daily chart

The EUR/USD is currently treading water at 3-day’s low probing the 1.2260 level while rejected from the 50-period simple moving average. The daily MACD is bearishly configured as well as the RSI, both pointing downward. Intraday support is seen at 1.2260, 3-day low followed by 1.2200 previous supply/demand zone while resistance is seen at 1.2360 3-day high, followed by 1.2450, a cyclical high.  

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales

EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.


GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives

GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.


USD/JPY clings to gains near session tops, around 108.70 post-US data

The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.


Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more