EUR/USD: Probing key hurdle on trade optimism, ECB minutes eyed


  • EUR/USD ticked higher in Asia on trade optimism. 
  • The pair is currently flirting with the stiff 21-day moving average hurdle. 
  • The tone of the ECB minutes and the US monthly inflation data to provide near-term clues.

EUR/USD is teasing a break above key hurdle while heading into the London open. The currency pair may end the day with solid gains if the European Central Bank minutes sound less dovish-than-expected.

The pair eked out 0.16% gains in Asia, as the markets offered US Dollars on trade optimism generated by a Bloomberg report stating that the US is planning to enter into a currency agreement with China. Further, The New York Times reported that the Trump administration may issue licenses that will allow some US companies to supply products to China's Huawei.

As of writing, the pair is 21-day moving average (MA) at 1.0987. The technical line has been capping upside since Oct. 3 and is the level to beat for the bulls. A close above the key MA would open the doors for a stronger corrective bounce, possibly to 1.1110 (Sept. 13 high).

Focus on the ECB minutes

The minutes of the European Central Bank's (ECB) September policy meeting are scheduled for release at 11:30 GMT.

The central bank lowered its deposit rate by 10 basis points to -0.50% in September and also announced a fresh bond-buying program, scheduled to begin from November.

The fresh stimulus announcement, however, was contentious. Governing Council member Robert Holzmann recently criticized the zero interest rate policy (ZIRP) in Europe, by stating that it leads to less growth and lower productivity.

The EUR may pick up a bid if the minutes underscore the growing dissent within the Governing Council. However, if the minutes show growing consensus regarding the need for more stimulus, the EUR could come under pressure – more so, as Federal Reserve's (Fed) September meeting minutes released on Wednesday showed increasing concern among some policymakers that financial markets are expecting more rate cuts than the US central bank will deliver this year.

Also, the American Dollar may find bids if the Consumer Price Index (MOM) (Sep) beats estimates by a big margin, forcing investors to scale back expectations of an October rate cut.

Technical levels

EUR/USD

Overview
Today last price 1.0987
Today Daily Change 0.0005
Today Daily Change % 0.05
Today daily open 1.0984
 
Trends
Daily SMA20 1.0989
Daily SMA50 1.1053
Daily SMA100 1.1146
Daily SMA200 1.1225
 
Levels
Previous Daily High 1.099
Previous Daily Low 1.0955
Previous Weekly High 1.1
Previous Weekly Low 1.0879
Previous Monthly High 1.111
Previous Monthly Low 1.0885
Daily Fibonacci 38.2% 1.0977
Daily Fibonacci 61.8% 1.0968
Daily Pivot Point S1 1.0963
Daily Pivot Point S2 1.0941
Daily Pivot Point S3 1.0927
Daily Pivot Point R1 1.0998
Daily Pivot Point R2 1.1012
Daily Pivot Point R3 1.1033

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD: Bears eye 1.25 as disappointing UK GDP knocks off yields

GBP/USD extends losses towards 1.2500, as the UK GDP disappointment weighs negatively on the 2-year Gilt yields. Broad US dollar strength amid risk-off mood also adds to the bearish pressure on the cable. 

GBP/USD News

EUR/USD holds steady below 1.1350 amid risk-aversion

EUR/USD holds steady below 1.1350, as US dollar trades firmer amid broad risk-aversion. The German ZEW Survey to show signs of an economic turnaround. Heightened expectations for an EU fiscal stimulus plan underpin the shared currency. 

EUR/USD News

Gold: $1796 is the level to beat for the XAU bears

Gold is trying hard to recover ground above the $1800 mark, as the US dollar continues to benefit from broad risk-aversion amid looming coronavirus risks. Let’s see how it is positioned ahead of the critical US CPI release.

Gold News

Forex Today: US dollar seizes control as risk aversion returns, a busy docket ahead

Broad US dollar strength extended into Asia, as risk-averse market conditions persisted amid intensifying coronavirus fears and US-China tensions. The Asian equities followed the late sell-off on Wall Street while the US stock futures struggled with its recovery.

Read more

WTI recovers from intraday low under $40.00 ahead of API inventories

WTI’s pullback from $39.30 fails to defy a two-day losing streak. China’s sustained increase in oil imports confronts chatter of easing output cuts. US inflation data, API stockpiles and American earnings are in the spotlight.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures