EUR/USD remains depressed near 1.1730, focus on Powell

EUR/USD extends the drop to the 1.1720 area on Tuesday.
ECB-speak, EMU’s Consumer Confidence next in the calendar.
Markets’ attention remains on Powell’s first testimony later in the session.

Pablo Piovano FXStreet

The selling pressure around the single currency remains well in place on turnaround Tuesday, with EUR/USD clinching fresh multi-week lows around 1.1720.

EUR/USD looks to data, Powell

EUR/USD prolongs the leg lower for the third session in a row on Tuesday, briefly testing fresh lows in the 1.1720 region albeit managing to regain some composure soon afterwards.

The dominating risk aversion mood and the renewed and strong demand for the greenback put the pair under extra downside pressure in past sessions, opening the door at the same time to deeper retracement in the short-term.

Later in the session, ECB’s Board members F.Panetta and P.Lane are due to speak while the European Commission (EC) will publish the preliminary gauge of the Consumer Confidence in the region.

Across the pond, Chief J.Powell wil testify on the Fed’s response to the pandemic before the House Financial Services Committee. In the data space, Existing Home Sales and the Richmond Fed Index are also due.

What to look for around EUR

EUR/USD dropped and recorded fresh monthly lows near 1.1720 earlier in the session, resuming the post-FOMC downtrend. Despite the move, the pair’s outlook remains positive and bouts of weakness are so far deemed as short-lived and look contained. Further out, the underlying constructive bias in the euro remains underpinned by auspicious results from domestic fundamentals (which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis), the so far calm US-China trade front and the steady – albeit vigilant- stance from the ECB. The solid position of the EMU’s current account and the positive performance of the speculative community are also lending support to the shared currency.

EUR/USD levels to watch

At the moment, the pair is losing 0.26% at 1.1739 and faces the next support at 1.1720 (monthly low Sep.22) seconded by 1.1709 (38.2% Fibo of the 2017-2018 rally) and finally 1.1695 (monthly low Aug.3). On the other hand, a break above 1.1917 (high Sep.10) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD gathers traction, approaches 1.1800

EUR/USD manages to reverse Tuesday’s pullback, advancing to two-day highs near the 1.1800 hurdle in the latter part of Wednesday’s session. The pair’s decent uptick comes on the back of the modest retracement in the US Dollar, as investors continue to closely follow developments on the trade front and news from the White House in the wake of President Trump’s SOTU speech.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

Crypto Today: Bitcoin, Ethereum, XRP test rebound strength as ETF inflows return

Bitcoin, Ethereum and Ripple are gaining traction at the time of writing on Wednesday, amid persistent market doldrums. The Crypto King is up over 2% intraday, trading above $65,000 from the day’s opening of $64,058.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.