The EUR/USD pair struggled to build on early gains to fresh five week tops and turned sharply lower, erasing all of its gains recorded in the previous session.

The post-FOMC selling pressure surrounding the greenback seems to have abated and prompted traders to take some profits off the table ahead of the US economic releases. In fact, the key US Dollar Index staged a goodish recovery from sub-100.00 mark and has been an exclusive driver of the pair's retracement from the highest level since Feb. 6.

In absence of any fundamental drivers, market players also attributed the pair’s slide, in the past hour or so, to the latest OpinonWay French election poll results that showed Le Pen gaining some ground. 

Meanwhile, market also seems to have digested ECB Nowotny’s hawkish remarks on Thursday, indicating possibility of raising the deposit rate before ECB raised its main refinancing rate, and preferred to turn cautious ahead of any news coming out of the G20 and Trump-Merkel meeting.
 
On the economic data front, the release of industrial production data and prelim UoM consumer sentiment index might also provide some impetus during early NA session.

Technical levels to watch

A follow through retracement below 1.0730 level is likely to trigger a fresh leg of corrective slide towards 1.0700 handle, below which the pair might turn vulnerable to head back towards 100-day SMA support near 1.0655-50 region.

On the upside, momentum back above 1.0765 level now seems to lift the pair through 1.0800 handle towards testing its next major hurdle near 1.0820-30 zone.

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Strongly Bearish Neutral High
1H Bullish Overbought Low
4H Slightly Bullish Overbought High
1D Bullish Neutral High
1W Bearish Neutral Low

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD losses momentum and trades around 0.6950

AUD/USD losses momentum and trades around 0.6950

AUD/USD eased in the American session to settle at the lower end of its Tuesday range. Lingering Chinese and US inflation figures sent investors to the sidelines. Eyes on equities and government bond yields.

AUD/USD News

EURUSD returns 1.0200 as the market mood sours

EURUSD returns 1.0200 as the market mood sours

The EUR/USD pair is battling to hold above the 1.0200 mark, undermined by a souring market mood. The European energy crisis adds to the poor performance of the shared currency.

EUR/USD News

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold kept rallying on Tuesday, hitting a fresh one-month high. The greenback remained weak throughout the first half of the day, recovering some ground after Wall Street’s opening amid the poor tone of US indexes.

Gold News

Iran adopts crypto in foreign trade, debuts with $10 million import order

Iran adopts crypto in foreign trade, debuts with $10 million import order

In a watershed moment for crypto adoption, Iran registered its first official order for importing $10M worth of goods paid for in cryptocurrencies. A private Iranian news agency reported that the Ministry of Industry, Mine and Trade has plans to widely use cryptos in foreign trade.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures