EUR/USD takes a sharp U-turn, drops back to 1.1640


  • 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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.

EUR/USD News

GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.

GBP/USD News

XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more

Forex MAJORS

Cryptocurrencies

Signatures