- The EUR/USD recovery fizzles as USD bounces-back across the board.
- Upbeat German and Eurozone services PMI could offer some support to the Euro.
The EUR/USD pair faced rejection once again near the 1.1680 region and from there came under heavy selling pressure at the European open, after the US dollar staged a solid comeback across its main competitors.
EUR/USD: Focus shifts to FOMC minutes
The spot eroded 50-pips rapidly and now hovers near daily lows of 1.1637, as the monetary policy divergence between both continents is back in play amid a lack of fresh fundamental catalysts and ahead of the FOMC June meeting minutes release due tomorrow. The Fed remains on track for two more rate hikes this year amid strengthening US economy.
However, it remains to be seen If the major can hold the 1.16 handle in the day ahead, as better-than-expected German and Eurozone June services PMI data could rescue the EUR bulls.
Meanwhile, markets continue to digest the Financial Times (FT) report that the European Union (EU) is s considering talks on a tariff-cutting deal between the world’s big car exporters to prevent an all-out trade war with the US.
With the Euroland data out of the way, there is no macro news on the cards as the US observes the Independence Day holiday. Hence, the pair will continue to get influenced by the US dollar price-action.
EUR/USD Technical Levels:
Nenad Kerkez, Head of Technical Analysis and Trading at Elite CurrenSea, explains: “The EUR/USD has been contained in a consolidation triangle and we can see that the price is close to the vortex now. However, a three touch trend line has been spotted at resistance and as long as the EUR/USD is below 1.1687, there is a chance for a drop towards 1.1644. Below 1.1644 targets are 1.1629 and 1.1605. Only above 1.1687, the pair should be bullish eventually reaching 1.1711 and 1.1735.”
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
Editors’ Picks
AUD/USD faces further weakness near term
AUD/USD weakened further and revisited the 0.6560 region amidst quite a negative start to the week and in response to the sharp move higher in the US Dollar and disheartening news from the Chinese economy.
EUR/USD backslides on thin Monday volumes
EUR/USD slid to a fresh 30-week low on Monday, kicking off the first trading session of the week with a 0.6% decline. Fiber extended losses below the 1.0700 handle as Euro bulls evaporate as markets await key US Consumer Price Index inflation and a fresh update to pan-European Gross Domestic Product figures.
Gold falls as firm US Dollar is boostes by tariff woes
Gold plummets more than 2.50% on Monday as the Greenback hits a four-month high. Expectations that Donald Trump’s second presidential term could spark an escalation on the trade war front is keeping the US Dollar on the front foot.
How high can Bitcoin go? Prediction markets suggest $100K
Bitcoin is consistently setting new record highs on Monday after breaking above $89K. The continued uptrend has led asset managers like Bernstein to urge investors to consider adding Bitcoin exposure to their portfolios.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
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.