EUR/USD: Rangeplay continues ahead of key German data

  • EUR/USD remains trapped in 1.1250-1.1167 range for the fifth day.
  • The downside has been capped near 1.1167 despite the German yield curve inversion.
  • EUR could take a beating if the German ZEW survey underlines the need for additional monetary easing by the ECB.

EUR/USD is lacking a clear directional bias for the fifth straight day.

The pair charted a Doji candle – a sign of indecision – last Tuesday and has remained trapped largely in a narrow range of 1.1250-1.1167 ever since.

German yield curve inverts

The spread between the German 10-year and three-month Bund yields fell below zero on Aug. 6 and stood at -0.036 basis points on Monday.

Even so, the downside in EUR/USD has been restricted around 1.1167. The EUR's resilience could be associated with the escalating US-China trade tensions, protests in Hong Kong and US-Iran tensions.

After all, the European Central Bank is running a negative interest rate policy and the entire German yield curve is offering negative returns for the first time on record. So, many observers believe the EUR is a funding currency - the one which rises during risk-off and is used to fund purchases of risk assets during improve risk appetite.

So, the EUR could continue to defend 1.1167 if the risk-off worsens. The common currency, however, may pierce the lower edge of the recent trading range if the German data disappoints expectations.

Focus on German data

The ZEW survey scheduled for release at 09:00 GMT is expected to show the Economic Sentiment deteriorated to -30 index points in August from July's reading of -24. Meanwhile, Current Situation is forecasted to drop to -7 from -1.1.

If the ZEW survey matches estimates or print below estimates, then markets may price in greater odds of an aggressive ECB easing in the near term by offering the EUR across the board.

Apart from ZEW data, the EUR pair may also take cues from the German inflation number scheduled for release at 06:00 GMT. In the American session, the focus would shift to the US Consumer Price Index.

Technical levels


Today last price 1.1189
Today Daily Change -0.0027
Today Daily Change % -0.24
Today daily open 1.1216
Daily SMA20 1.1174
Daily SMA50 1.1239
Daily SMA100 1.1225
Daily SMA200 1.1296
Previous Daily High 1.1232
Previous Daily Low 1.1162
Previous Weekly High 1.1251
Previous Weekly Low 1.1104
Previous Monthly High 1.1373
Previous Monthly Low 1.106
Daily Fibonacci 38.2% 1.1205
Daily Fibonacci 61.8% 1.1189
Daily Pivot Point S1 1.1174
Daily Pivot Point S2 1.1134
Daily Pivot Point S3 1.1105
Daily Pivot Point R1 1.1244
Daily Pivot Point R2 1.1272
Daily Pivot Point R3 1.1314



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

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.


GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 


EUR/USD Weekly Forecast: Fed may fuel the next leg of rally, bulls eye 1.2240

EUR/USD has been extending its gains amid dovish Fed policy and the eurozone's vaccination drive.   Eurozone PMIs and Fed meeting minutes are set to move the currency pair. Mid-May's daily chart is pointing to further gains.The FX Poll is showing mild downside pressure. 

Read full analysis

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more