The shared currency stalled its downslide against the US dollar in early Europe, with the EUR/USD pair now on a recovery mode in an attempt to regain 1.1150 barrier.
EUR/USD: 5-DMA at 1.1176 back on sight
The spot reversed course from two-week troughs and recovered almost half the sell-off triggered by reports of Greece threatening to opt out of next payment without a debt deal if creditors cannot agree on debt relief.
The latest leg up in the major can be mainly attributed to the Greek government spokesman Tzanakopoulos comments, denying reports that Greece is considering rejecting the debt relief tranche offered by its creditors.
Moreover, a turnaround in risk condition, with risk-on back in vogue, prompted a solid comeback in the EUR/JPY cross as the Yen sellers returned to markets. Hence, EUR/JPY driven recovery also pushed the EUR/USD pair back towards the mid-point of 1.11 handle.
All eyes now remain on the German prelim CPI, which is expected to show consumer prices decelerating in the month of May, aggravating ECB President Draghi’s concerns on inflation. Meanwhile, the spot may also take fresh cues from the US Core PCE price index, personal spending and consumer confidence numbers lined up for release later in the American session.
EUR/USD Technical Levels
Slobodan Drvenica at Windsor Brokers Ltd notes: “The pair is trading in red for the fourth consecutive day and hit session low just ahead of 1.1100 support (Fibo 38.2% of 1.0839/1.1268 upleg), which marks the trigger for further weakness. Break below 1.1100 handle could accelerate through 1.1060 (base of thick 4-hr cloud, reinforced by rising 20SMA) and may extend towards psychological 1.1000 support (also Fibo 61.8% of 1.0839/1.1268).”
“Daily RSI reversed from overbought territory and shows a plenty of room at the downside, however, oversold slow stochastic suggests bears may pause, but so far lacking firmer signal as the indicator is still heading south,” Slobodan adds.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.