• EUR/USD has continued to struggle to get close to the 1.1800 level, with gains petering out around the 1.1790 area.
  • Continued concerns about lockdown and the Coivd-19 pandemic in the Eurozone mean that it is unsurprising to EUR struggle.

EUR/USD has continued to struggle to get close to the 1.1800 level, with gains petering out around the 1.1790 area on Tuesday, but the price action remaining well support above last week’s 1.1760 lows. Rangebound trade is not really surprising given a lack of fresh fundamental drivers this Monday and with a batch of key events expected to shake things up later in the week. At present, the pair trades with modest losses of just over 10 pips or about 0.1% on the day.

Driving the day

Continued concerns about the lockdown and the trajectory of the pandemic in the Eurozone mean that it is unsurprising to see the euro struggle to gain traction against its US dollar counterpart on Monday. German Chancellor Angela Merkel reportedly does not see the lockdown restrictions in many states as sufficient to contain the third Covid-19 wave and is reportedly threatening to impose federal law to ensure restrictions are tough enough. Meanwhile, high infection rates in most EU countries mean lockdown eases remains a distant prospect for many countries.

But concerns that pre-mature reopening is driving what could be the start of the third wave of Covid-19 cases in the US (or that is how US NIH Director Anthony Fauci put it anyway) are growing. The US Centre for Disease Control and the White House have expressed concerns, and both are likely to put pressure on state governors not to reopen too fast or to even backtrack no some reopening measures. If the recent uptick in infections in the US does take a nasty turn, as happened in Europe over the last few weeks, then this could dent US growth expectations for 2021,which would in theory be USD negative. But USD may be able to fall back on its status as a safe-haven asset to save the day, at least versus the likes of the euro where the economic outlook will remain significantly worse even if there is a third wave in the US (mostly due to the lack of fiscal stimulus in Europe).

In other notable news for EUR/USD, the newest Fed member Chris Waller (who is a voter) gave his first speaking appearance. Waller noted that the Fed would respond to a disorderly rise in US government bond yields, but said that the recent rise in yields is not disorderly. Moreover, in a similar sentiment to other Fed members, Waller said that the recent move higher in yields is a reflection of the fact that the US economy is improving. He said that while Yields Curve Control is an available took for the Fed, “there are lots of tools you don’t need to pull out”. Finally, Waller noted that the Fed is a long way from raising rates.

EUR/Usd

Overview
Today last price 1.1777
Today Daily Change -0.0016
Today Daily Change % -0.14
Today daily open 1.1793
 
Trends
Daily SMA20 1.1924
Daily SMA50 1.2034
Daily SMA100 1.2057
Daily SMA200 1.1869
 
Levels
Previous Daily High 1.1805
Previous Daily Low 1.1764
Previous Weekly High 1.1947
Previous Weekly Low 1.1762
Previous Monthly High 1.2243
Previous Monthly Low 1.1952
Daily Fibonacci 38.2% 1.1789
Daily Fibonacci 61.8% 1.178
Daily Pivot Point S1 1.177
Daily Pivot Point S2 1.1746
Daily Pivot Point S3 1.1729
Daily Pivot Point R1 1.1811
Daily Pivot Point R2 1.1829
Daily Pivot Point R3 1.1852

 

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD rebounds above 1.0300 as dollar resumes post-US CPI decline

EUR/USD rebounds above 1.0300 as dollar resumes post-US CPI decline

EUR/USD has jumped back above 1.0300 amid fresh weakness in the US dollar. Risk sentiment regains traction despite the US-Sino tensions and China's covid woes. Investors reassess the US inflation data and its impact on Fed rate hike expectations.

EUR/USD News

GBP/USD recaptures 1.2200 ahead UK ministers’ meeting with energy firms

GBP/USD recaptures 1.2200 ahead UK ministers’ meeting with energy firms

GBP/USD is paring losses to trade above 1.2200 in early European trading. The US dollar sees renewed selling amid the return of risk flows. The safe-haven dollar fails to capitalize on China-linked concerns. The UK ministers will meet major energy firms amid a deepening energy crisis. 

GBP/USD News

Gold: Sellers poke $1,784 support on Fed, China jitters

Gold: Sellers poke $1,784 support on Fed, China jitters

Gold price holds lower grounds around intraday bottom near $1,780, as bears attack the 50-DMA heading into Thursday’s European session. The precious metal respects the US dollar’s latest rebound amid mixed concerns surrounding the Fed's next move and China.

Gold News

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price shows a resilience that has not only kept it above a significant support level but also managed to slowly catalyze a move that could result in a 60% upswing.

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