EUR/USD tumbles further to 1.1750, fresh 2018 lows

The pair tests new multi-month lows in the mid-1.1700s.
The US Dollar Index trades closer to the 94.00 milestone.
US 10-year yields stay in lows around 3.08%.

Pablo Piovano FXStreet

The downside momentum around the shared currency is gathering further traction today and is dragging EUR/USD to record fresh lows in the mid-1.1700s.

EUR/USD now looks to 1.1718

The pair has been trading in the negative territory for the last five sessions, coming under extra selling pressure following the rejection from Monday’s peaks in the 1.2000 neighbourhood.

On the other side, the sentiment around the buck remains robust, motivating the US Dollar Index (DXY) to advance to fresh tops in the 93.80 region - levels last visited back in December 2017 – in spite of the leg lower in US 10-year yields.

In the meantime, the pair is falling further into the oversold area, as the RSI is hovering over the 25.0 level, all opening the door for a potential visit to the 1.1718 level (low December 2017).

EUR/USD levels to watch

At the moment, the pair is losing 0.28% at 1.1762 and a breakdown of 1.1750 (2018 low May 18) would target 1.1718 (monthly low Dec.12 2017) en route to 1.1553 (monthly low Nov. 7 2017). On the flip side, the next resistance aligns at 1.1867 (10-day sma) seconded by 1.1996 (high May 14) and finally 1.2021 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold gains at start of Fed’s policy week

Gold finds bids below $4,000 in the Asian trade on Monday. The precious metal starts the Federal Reserve’s monetary policy week on positive note, but is broadly vulnerable, being closer to its three-month low of $3,975.

Bitcoin slides below $80,000, Ethereum and XRP bears in control

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) bears remain in control, extending losses on Monday after three straight weeks of declines. BTC slips below $80,000, while ETH and XRP follow BTC’s lead and trade lower at $2,315 and $1.30, respectively. The price action of these top three cryptocurrencies suggests weakening momentum indicators, raising the risk of a deeper correction.

CFTC Report: WTI rally runs ahead of positioning

The week in one sentence: WTI prices surged while speculative longs were cut in the week to October 20, creating the clearest price/positioning divergence. Sterling and the Canadian Dollar led the constructive currency shift, while Yen longs also rebuilt. Speculators turned less constructive on the WTI, reducing their net exposure to around 89.3K contracts.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.