EUR/USD stays close to 1.19 ahead of further US data


  • EUR/USD has briefly tested the key 1.19 barrier.
  • Economic Sentiment in Germany, Euroland came in better than expected.
  • US Empire State index surprised to the upside in September.

The buying interest around the shared currency remains well and sound on Tuesday and is now helping EUR/USD to return to the 1.19 neighbourhood.

EUR/USD stronger on USD-weakness

EUR/USD is consolidating the bounce off last week’s lows in the mid-1.1700s and is already flirting with the key barrier at 1.19 the figure amidst a 5-day positive streak.

As usual, the shift in investors’ sentiment towards the euro – particularly after the ECB event on Thursday – and the return of the offered bias to the greenback have been sustaining the rebound in the pair.

In addition, encouraging results from September’s Economic Sentiment in both Germany and the broader Euroland also lent wings to the pair’s march north.

Data wise in the US calendar, Export Prices rose 0.5% MoM in August and Import Prices rose 0.9% MoM. Further data saw the NY Empire State index rising to 17.00 for the current month, also bettering expectations.

Later in the session, Industrial/Manufacturing Production are due along with Capacity Utilization figures and the API’s weekly report on crude inventories.

What to look for around EUR

EUR/USD managed to test the area just above 1.20 the figure at the beginning of the month. The move, however, lacked follow through and triggered a corrective downside that met contention near 1.1750. Looking at the broader picture, the bearish view on the dollar continues to sustain the underlying constructive bias in the pair, all accompanied by the improved sentiment in the risk-associated universe, auspicious results from domestic fundamentals - which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis – as well as a calmer US-China trade front. The solid positive stance in the speculative community also underpins the constructive outlook in the euro, while the latest message from the ECB also collaborates with the momentum in the euro.

EUR/USD levels to watch

At the moment, the pair is gaining 0.19% at 1.1885 and a breakout of 1.1965 (monthly high Aug.18) would target 1.2011 (2020 high Sep.1) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally). On the flip side, immediate contention is located at 1.1752 (monthly low Sep.9) seconded by 1.1709 (38.2% Fibo of the 2017-2018 rally) and finally 1.1695 (monthly low Aug.3).

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”

EUR/USD News

GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.

GBP/USD News

XAU/USD bullish bias starting to fade

Gold prices are testing the bull's commitments at the support structure around $1,906 in what could be a final test before the next leg higher of the bullish trend.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures