- EUR creates bearish pinbar after Trump's "strong dollar" comment.
- Focus on US data - GDP and durable goods orders.
EUR/USD formed a bearish pinbar candle yesterday as Trump's strong dollar comment gave a much-needed boost to the greenback. The currency pair fell to 1.2364 in late NY session before rising to 1.2430 levels in Asia.
The bearish pinbar if followed by a negative price action today would add credence to the overbought conditions as shown by the RSI and indicate a short-term top is in place at 1.2538.
That said, only a strong US GDP and the durable goods figure could yield a negative follow-through to yesterday's bearish pinbar candle. This is because Trump's pro-USD comments have already been shrugged off by Asian desks (as indicated by a rise in EUR/USD in Asia).
Further, ECB President Draghi's focus on GDP and relatively mild emphasis on the strong EUR is being read by investors as a sign the central bank is comfortable with the EUR's ascent. Hence, only a strong US Q4 and Dec durable goods orders figure could weigh over the EUR/USD pair.
Kathy Lien from BK Asset Management writes, " We are looking for (US) growth to slow as trade and retail sales activity weakened towards the end of the year." EUR/USD could revisit previous day's high of 1.2538 if the US data shows a sharp slowdown in the economic activity.
EUR/USD Technical Levels
As of writing, the spot is trading at 1.2425 levels. A move above 1.2432 (monthly 200-MA) could see the pair test supply around 1.25 (zero levels) and 1.2538 (previous day's high). On the other hand, a break below 1.2399 (1-hour 50-MA) could yield a pullback to 1.2329 (1-hour 100-MA) and 1.2284 (1-hour 200-MA)
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
EUR/USD falls toward 1.0800 as USD gathers strength
EUR/USD came under renewed bearish pressure and declined toward 1.0800 in the American session on Monday. The bearish opening in Wall Street confirmed risk-averse conditions and provided a boost to the USD, causing the pair to stretch lower.
Gold price extends correction from all-time highs, drops below $2,050
Gold price staged a deep correction from the record top it set near $2,150 and declined below $2,050. Recovering US Treasury bond yields and risk aversion help the USD find demand and make it difficult for XAU/USD to shake off the selling pressure.
GBP/USD closes in on 1.2600 as mood sours
GBP/USD stays on the back foot and trades near 1.2600 in the American session. The US Dollar continues to find demand as a safe haven and weighs on the pair while major equity indexes in the US push lower after the opening bell.
Bitcoin price could revisit $45,000 according to crypto analyst
Bitcoin price crossed the $41,000 mark on Binance, in its ongoing uptrend. BTC price rally is likely driven by the anticipation of Spot Bitcoin ETF approval. There are more catalysts driving BTC price gains in the current cycle.
The week ahead – US Nonfarm Payrolls, RBA and BoC in spotlight
Last month’s October jobs report was the first one this year when the headline number came in below market expectations, though not by enough to raise concerns over the resilience of the US economy.