EUR/USD retreats to 1.1850 area on renewed USD strength


Share:
  • EUR/USD turned south during the American trading hours.
  • US Dollar Index extends recovery to 92.50 area.
  • Rising US Treasury bond yields provide a boost to USD on Tuesday.

The EUR/USD pair spent the first half of the day moving sideways a little below 1.1900 but lost its traction during the American trading hours. As of writing, the pair was down 0.18% on a daily basis at 1.1847.

DXY continues to erase Friday's losses

The renewed USD strength on Tuesday seems to be forcing EUR/USD pair to edge lower. The US Dollar Index, which suffered heavy losses on disappointing August jobs report on Friday, extended its rebound and was last seen rising 0.3% at 92.84.

In the absence of high-impact macroeconomic data releases, the sharp increase witnessed in the 10-year US Treasury bond yield seems to be helping the greenback find demand.

Earlier in the day, the data from the euro area showed that the GDP grew by 2.2% on a quarterly basis in the second quarter. Although this reading was much better than the market expectation for a contraction of 0.6%, the shared currency struggled to capitalize on it. On a negative note, the ZEW Survey - Economic Sentiment for the eurozone declined to 31.1 in September from 42.7 in August and fell short of analysts' estimate of 52.2.

On Thursday, the European Central Bank (ECB) will announce its policy decisions. Previewing the ECB event's potential impact on EUR/USD, "we expect the ECB to announce a reduced pace of Q4 PEPP purchases, partly reflecting easier financial conditions," noted TD Securities analysts. “This backdrop should reinforce the recent bottom in the EUR/USD, indicating that we're likely to revisit 1.20 rather than 1.15 in the months ahead.”

EUR/USD set to revisit the 1.20 level – TDS.

Technical levels to watch for

EUR/USD

Overview
Today last price 1.1846
Today Daily Change -0.0025
Today Daily Change % -0.21
Today daily open 1.1871
 
Trends
Daily SMA20 1.1773
Daily SMA50 1.1805
Daily SMA100 1.195
Daily SMA200 1.2004
 
Levels
Previous Daily High 1.1886
Previous Daily Low 1.1856
Previous Weekly High 1.1909
Previous Weekly Low 1.1783
Previous Monthly High 1.19
Previous Monthly Low 1.1664
Daily Fibonacci 38.2% 1.1867
Daily Fibonacci 61.8% 1.1875
Daily Pivot Point S1 1.1856
Daily Pivot Point S2 1.184
Daily Pivot Point S3 1.1825
Daily Pivot Point R1 1.1886
Daily Pivot Point R2 1.1902
Daily Pivot Point R3 1.1917

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD holds steady below 1.0800 ahead of EU data

EUR/USD holds steady below 1.0800 ahead of EU data

EUR/USD is holding steady just shy of the 1.0800 mark in the early European morning. The US Dollar is consolidating the upside amid a cautious market tone, as investors assess Friday's US NFP blowout and hawkish Fed expectations. Eurozone data coming up next. 

EUR/USD News

GBP/USD defends gains near 1.2050 amid renewed Brexit optimism

GBP/USD defends gains near 1.2050 amid renewed Brexit optimism

GBP/USD is defending minor bids near 1.2050 in the European session. The Cable finds support from the renewed Brexit optimism, despite a broadly firmer US Dollar. EU said that they have reached a breakthrough on trade reported in NI protocol talks. 

GBP/USD News

Gold bulls need validation from $1,905

Gold bulls need validation from $1,905

Gold price rebounds from monthly low, grinding higher around intraday tops surrounding $1,878 heading into Monday’s European session. In doing so, the yellow metal snaps a two-day downtrend amid the sluggish US Dollar.

Gold News

Is this the beginning of the end for crypto bulls?

Is this the beginning of the end for crypto bulls?

Bitcoin is the glue that is holding this 2023 bull run intact for Ethereum, Ripple and other altcoins. But chinks in BTC bulls’ armor are beginning to show, therefore, investors need to be cautious of a sudden reversal. 

Read more

The Week Ahead - RBA rate meeting, UK Q4 GDP and earnings

The Week Ahead - RBA rate meeting, UK Q4 GDP and earnings

Back in November the RBA hiked rates by a less than expected 25bps, amidst concern about the effects recent rate hikes were having on the Australian economy and ergo the housing market. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures