EUR/USD stuck in tight range around 1.0875, IFO, ECB Draghi eyed


The EUR/USD bearish consolidation phase extends into Asia this Tuesday, as the bears gather pace for the next leg lower amid renewed demand for the US dollar across the board.

EUR/USD capped below 5-DMA at 1.0891

Currently, EUR/USD trades modestly flat near session highs of 1.0880, having found support well above daily S1 located at 1.0859. The main currency pair failed to sustain above 1.09 handle and since then continues to trade around a flat-line below the last, extending its overnight range-play into Asia.

The major remains vulnerable amid fresh buying interest seen in the US dollar against its major peers, after recent hawkish Fedspeaks almost confirm a Dec rate rise, with higher 2-year treasury yields reflecting the same. Meanwhile, the USD index trades +0.12% higher at 98.76 levels, having retested multi-month tops reached yesterday at 98.82.

Calendar-wise, the major now await the German Ifo surveys ahead of the US consumer confidence and Richmond manufacturing data due later in the NA session. While the main risk event for the major today remains the ECB Chief Draghi’s speech, as he is likely to speak about stability, equity, and monetary policy at the German Institute for Economic Research, in Berlin

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0891 (5-DMA). A break beyond the last, doors will open for a test of 1.0934 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0850 (psychological levels) below which 1.0820 (March lows) and 1.0800 (round figure) could be tested.

 

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD trades sideways near 1.0900 amid cautious optimism

EUR/USD trades sideways near 1.0900 amid cautious optimism

EUR/USD trades sideways near 1.0900 on Tuesday. The US Dollar looks to stabilize amid cautious optimism, as uncertainty over the US presidential election outcome lingers. US ISM Services PMI is also in focus, as Americans head to the polls. 

EUR/USD News
GBP/USD clings to modest gains below 1.3000, awaits US election result

GBP/USD clings to modest gains below 1.3000, awaits US election result

GBP/USD trades marginally higher on the day but remains below 1.3000 after finding support near 1.2950 on a broadly subdued US Dollar. Traders eagerly await the outcome of the US presidential election, refraining from placing fresh bets on the major. 

GBP/USD News
Gold holds steady below $2,750 as markets gear up for US election

Gold holds steady below $2,750 as markets gear up for US election

Gold attracts dip-buyers after touching a one-week low on Tuesday and trades above $2,740. XAU/USD draws support from a combination of factors. Fed rate cut bets, declining US bond yields and subdued USD demand continue to act as a tailwind for the precious metal. 

Gold News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

Read more
US presidential election outcome: What could it mean for the US Dollar?

US presidential election outcome: What could it mean for the US Dollar? Premium

The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures