EUR/USD rebounds modestly from 1.2000, stays in the negative territory


  • EUR/USD remains on the back foot on Tuesday.
  • Wall Street's main indexes fall sharply as market mood sours.
  • US Dollar Index clings to daily gains above 91.00.

The EUR/USD pair dropped below 1.2000 for the first time in nearly two weeks on Tuesday. Although the pair managed to erase a portion of its daily losses in the last hour, it's still down 0.3% on a daily basis at 1.2027.

The USD's market valuation continues to impact EUR/USD's movements. Following Monday's decline, the US Dollar Index (DXY) gained traction on Tuesday with the greenback finding demand as a safe haven in the risk-averse market environment. Reflecting the dismal mood, Wall Street's three main indexes are down between 0.7% and 2.2% and the DXY is rising 0.25% at 91.20.

Earlier in the day, the data from the US revealed that Factory Orders rose by 1.1% in March, compared to analysts' estimate for an increase of 1.3%. Moreover, the IBD/TIPP Economic Optimism Index dropped to 54.4 in May from 56.4 in April.

There won't be any other macroeconomic data releases from the US and the broad-based USD strength is likely to force EUR/USD to close in the red.

On Wednesday, the Markit Services PMI from the euro area and the US will be looked upon for fresh impetus. Additionally, the ISM Services PMI and the ADP Employment Change data will be featured in the US economic docket as well.

EUR/USD near-term outlook

FX Strategists at UOB Group think that EUR/USD could push lower with a break below 1.1975.

"The recent positive phase has run its course and the near-term bias is tilted to the downside. That said, EUR has to break the major support at 1.1975 before a more sustained (and sizeable) pullback can be expected," strategists said. "At this stage, the prospect for a break of 1.1975 is not high but it would increase unless EUR moves above 1.2105 within these few days."

Technical levels to watch for

EUR/USD

Overview
Today last price 1.2032
Today Daily Change -0.0033
Today Daily Change % -0.27
Today daily open 1.2065
 
Trends
Daily SMA20 1.2004
Daily SMA50 1.1954
Daily SMA100 1.2054
Daily SMA200 1.1944
 
Levels
Previous Daily High 1.2076
Previous Daily Low 1.2013
Previous Weekly High 1.215
Previous Weekly Low 1.2017
Previous Monthly High 1.215
Previous Monthly Low 1.1713
Daily Fibonacci 38.2% 1.2052
Daily Fibonacci 61.8% 1.2037
Daily Pivot Point S1 1.2027
Daily Pivot Point S2 1.1988
Daily Pivot Point S3 1.1964
Daily Pivot Point R1 1.209
Daily Pivot Point R2 1.2114
Daily Pivot Point R3 1.2153

 

 

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: EU vaccine deal helps extend US NFP-led run-up to fresh multi-day top towards 1.2200

EUR/USD begins the week with an uptick to refresh highest levels since February 26, wobbles around the top of late. EU battles for more vaccines as jab jitters disappoint the bloc members, Brexit, sluggish data add to the fears. DXY marked the biggest daily losses in six months after NFP debacle.

EUR/USD News

GBP/USD: Bulls on top in the open, but W-formation is compelling

GBP/USD is a mixed picture for days ahead as the price extends higher but leaves a bearish chart pattern on the daily time frame. The monthly chart is bullish while above the support structure as the price runs deeper into the supply territory.

GBP/USD News

Dogecoin: Defending 21-DMA is critical for DOGE after Musk calls it a ‘hustle’

The selling pressure in the Dogecoin (DOGE/USD) remains unabated for the second straight day on Sunday, as the corrective mode from all-time highs of $0.7605 remains intact. DOGE bulls remain hopeful as 21-DMA support holds, with RSI still bullish.

Read more

GBP/USD: Bulls on top in the open, but W-formation is compelling

GBP/USD is a mixed picture for days ahead as the price extends higher but leaves a bearish chart pattern on the daily time frame. The monthly chart is bullish while above the support structure as the price runs deeper into the supply territory.

GBP/USD News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more

Forex MAJORS

Cryptocurrencies

Signatures