EUR/USD rejected at 1.0980 in Asia on broad based dollar demand

  • EUR/USD remains on the offer amid dollar rally. 
  • The greenback is drawing bids on global funding stress. '
  • Recession fears and ECB's QE program will likely keep the single currency under pressure.

EUR/USD reversed lower from 1.0980 during the Asian trading hours and is now trading in the red near 1.09. 

The bounce from Wednesday's low of 1.0818 ran out of steam, as the haven bid around the dollar strengthened, yielding big gains for the greenback against majors including anti-risk currencies like yen. Commodity dollars, in particular, took a beating with AUD/USD falling by nearly 300 pips to hit the lowest level since 2002. 

Dollar is the king

"If cash is king, then dollar cash is the king of cash," according to FXStreet's Joseph Trevisani. 

The American dollar could continue to gain altitude on global funding stress. After all,  access to dollar liquidity is critical for the smooth functioning of the global financial system. 

Euro, on the other hand, is unlikely to find buyers, on recession fears. Also, the European Central Bank's decision to launch a fresh EUR 750 billion worth of QE program could keep the EUR buyers at bay. 

On the data front, Eurozone's Construction Output for January and the US weekly jobless claims are scheduled for release on Thursday. Traders could also take cues from the Philadelphia Fed Manufacturing Survey for March scheduled for release at 12:30 GMT. 

Technical levels


Today last price 1.0897
Today Daily Change -0.0016
Today Daily Change % -0.15
Today daily open 1.0913
Daily SMA20 1.1083
Daily SMA50 1.1038
Daily SMA100 1.1066
Daily SMA200 1.1096
Previous Daily High 1.1045
Previous Daily Low 1.0802
Previous Weekly High 1.1497
Previous Weekly Low 1.1055
Previous Monthly High 1.1089
Previous Monthly Low 1.0778
Daily Fibonacci 38.2% 1.0895
Daily Fibonacci 61.8% 1.0952
Daily Pivot Point S1 1.0795
Daily Pivot Point S2 1.0677
Daily Pivot Point S3 1.0552
Daily Pivot Point R1 1.1038
Daily Pivot Point R2 1.1164
Daily Pivot Point R3 1.1282



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more