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

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD holds firm near 0.7000 after Chinese inflation, trade data

AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, picking up some bids after China's mixed inflation and upbeat trade data. CPI rose less than expected in September, while PPI inflation picked up. Meanwhile, the Chinese trade surplus unexpectedly widened in September. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus remains on US CPI data.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold looks to $4100 and US CPI inflation amid geopolitical risks

Gold falls for the third straight day on Wednesday, as the recent recovery falters ahead of US inflation. US Dollar pauses correction amid rising Oil prices and stabilizing US Treasury bond yields. The daily bearish RSI remains a headwind for Gold buyers, with $4,100 seen at risk.

Bitcoin eyes $85,000; ETH holds support, XRP stabilizes

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) show signs of recovery on Wednesday as buyers try to regain control after their recent market weakness. BTC extends its rebound toward the $85,000 resistance, while ETH and XRP find support around key levels.

What happens after a US Treasury market crash

The global bond market is under severe pressure as US Treasury yields reach multi-decade highs, driven by persistent inflation risk, heavy government and corporate debt issuance, and expanding term premiums. Higher yields raise borrowing costs and tighten financial conditions, but a severe bond selloff can ultimately shift investor focus from inflation to growth and financial stability.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?