• US dollar moving sideways on Thursday, DXY post marginal losses.
  • Market participants await Powell’s speech on Friday.
  • EUR/USD rejected from above 1.0000, supported by 0.9950.

The EUR/USD is moving without a clear direction on Thursday ahead of a key speech from Jerome Powell at the Jackson Hole Symposium. The pair failed to hold above parity and then pulled back, finding support above 0.9950.

The US dollar gained momentum following the release of US economic data. The Q2 GDP growth rate was revised higher from -0.9% to -0.6% and jobless claims declined more than expected. US yields peaked after the reports and then retreated.

Aside from the numbers, market participants await Powell’s speech to be delivered on Friday. His words could bring clarity regarding the path of the Fed’s monetary policy. “We expect Powell to try and manage market expectations by maintaining the Fed’s hawkish tone. Between now and the September 20-21 FOMC meeting, we will get all the major August data and some of the early September surveys such as the preliminary S&P Global PMI readings and regional Fed surveys. The Fed will also have a better idea then of how the economy is doing in Q3,” explained analysts at Brown Brothers Harriman.

Regarding the European Central Bank, the minutes from the latest meeting showed a “large number” of members agreed it was appropriate to raise interest rates by 50 basis points. “The ECB is now fully in a data-dependent mode with chains from past guidance severed. Most Governing Council members are preoccupied with inflation risks, and large rate hikes are set to continue,” said Jan von Gerich, Chief Analyst at Nordea.

Unable to recover 1.0000

The EUR/USD shows no clear signs in the very short term. The euro continues to show weakness by being unable to hold above 1.0000. A recovery surpassing 1.0030 would add support to the shared currency. On the flip side, the immediate support stands at 0.9950. A slide below would expose the next barrier around 0.9900.

The main trend in EUR/USD remains bearish and the euro still looks vulnerable. It is on its way to the second weekly slide in a row and the lowest close since November 2002.

Technical levels

EUR/USD

Overview
Today last price 0.9979
Today Daily Change 0.0011
Today Daily Change % 0.11
Today daily open 0.9968
 
Trends
Daily SMA20 1.0161
Daily SMA50 1.0249
Daily SMA100 1.0449
Daily SMA200 1.0841
 
Levels
Previous Daily High 0.9999
Previous Daily Low 0.991
Previous Weekly High 1.0268
Previous Weekly Low 1.0032
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci 38.2% 0.9944
Daily Fibonacci 61.8% 0.9965
Daily Pivot Point S1 0.9919
Daily Pivot Point S2 0.987
Daily Pivot Point S3 0.983
Daily Pivot Point R1 1.0008
Daily Pivot Point R2 1.0048
Daily Pivot Point R3 1.0096

 

 

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

EUR/USD struggles to gather momentum, stays near 1.0350

EUR/USD struggles to gather momentum, stays near 1.0350

EUR/USD is having a difficult time gathering bullish momentum and fluctuating at around 1.0350 in the American session. With Wall Street's main indexes pushing lower after the opening bell, the US Dollar is gathering strength and not allowing the pair to gain traction.

EUR/USD News

GBP/USD falls below 1.2000 as mood sours

GBP/USD falls below 1.2000 as mood sours

GBP/USD has turned south and declined below 1.2000 in the second half of the day on Tuesday. The negative shift witnessed in risk sentiment seems to be helping the US Dollar find demand and forcing the pair to stay on the back foot.

GBPUSD News

Gold rebound loses momentum, upside limited below $1,760

Gold rebound loses momentum, upside limited below $1,760

Gold is rising on Tuesday, recovering after Monday’s slide. XAU/USD bottomed during the Asian session It then started to recover amid a rally of commodities and also emerging market currencies. 

Gold News

Bitcoin price hears jingle bells rolling in

Bitcoin price hears jingle bells rolling in

Bitcoin price looks set to rally substantially higher now that the social unrest in China is calming down. BTC could stage a 17% rally in the coming week.

Read more

Alibaba shares advance 5% on reduced China covid restrictions

Alibaba shares advance 5% on reduced China covid restrictions

BABA stock has jumped more than 5.2% in Tuesday’s premarket to $80 after China's National Health Commission said covid-related lockdowns should end as soon as possible. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures