EUR/USD rebounds to test 1.1150 as Greek worries recede

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.