- The EUR failed to take out a key falling trendline yesterday as the Fed signaled readiness to hike rates in September.
- The common currency could take a beating if the PMI's, due today, print below estimates and the 10-year Italian yield spikes.
The EUR/USD fell to 1.1550 in Asia, having faced rejection at the trendline sloping downwards from the April 19 high and July 31 high.
The Fed minutes released yesterday showed the policy makers are poised to continue gradually raising interest rates, meaning the rate differential is set to widen further in the USD-positive manner in the near future. As a result, the greenback picked up a bid in early Asia.
Looking ahead, the EUR/USD could extend the decline to 1.15 if the German and Eurozone PMIs, scheduled for release today, show the trade war is having a negative impact on the Eurozone economy.
The EUR traders should also keep an eye on the Italian government borrowing costs. The 10-year Italian government bond yield created a bullish outside-day candle yesterday and hence looks set to rise in the EUR-negative manner.
EUR/USD Technical Levels
Resistance: 1.1577 (61.8% Fib R of 1.1747/1.1301), 1.1610 (50-day moving average), 1.1628 (Aug. 8 high)
Support: 1.1527 (5-day moving average), 1.1508 (June 21 low), 1.1497 (100-hour moving average)
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
US Nonfarm Payrolls surprised to the downside in April, showing a gain of 175K jobs – LIVE
The job creation in the US economy seems to have slowed its pace after Nonfarm Payrolls figures reported an increase of 175K jobs in April, coming in short of consensus for a 243K gain.
EUR/USD rises to daily tops past 1.0800 post-NFP
The selling bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in April, lifting EUR/USD to the area of fresh peaks above 1.0800.
GBP/USD surpasses 1.2600 after disheartening US Payrolls
The resumption of the downward pressure in the US Dollar motivates GBP/USD to extend its earlier advance to the area beyond 1.2600 the figure in the wake of the release of US NFP.
Gold climbs to new highs above $2,300 on poor NFP prints
The precious metal maintains its bullish stance and breaks above the $2,300 barrier on Friday after US Nonfarm Payrolls showed the economy added fewer jobs than expected during last month.
XRP edges up after week-long decline as Ripple files letter in reply to SEC’s motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.