EUR/USD tumbles to fresh 2018 lows near 1.1760

The firm tone around the buck is weighing on the pair.
Spot retreats to levels last traded in late December 2017.
US Industrial Production expanded 0.7% MoM in April.

Pablo Piovano FXStreet

The robust pace of the greenback is now forcing EUR/USD to trade in the 1.1770/60 band, fresh multi-month lows.

EUR/USD weaker on USD-buying

The pair is now intensifying the leg lower, shedding ground for the third session in a row and navigating the area of fresh 2018 lows in the 1.1770/60 band, area last visited in mid-December 2017.

On the other hand, the greenback is extending its rally beyond the 93.60 level when tracked by the US Dollar Index, recording at the same time new 5-month peaks and always underpinned by the better tone in US yields.

In the data space, mixed US housing sector results saw Building Permits contracting less than expected in April at a monthly 1.8%, while Housing Starts dropped 3.7% MoM, missing consensus.

Further US data noted Industrial Production expanded 0.7% inter-month during last month and Manufacturing Production grew at a monthly 0.5%.

EUR/USD levels to watch

At the moment, the pair is losing 0.53% at 1.1776 and a breakdown of 1.1764 (2018 low May 16) would target 1.1718 (monthly low Dec.12 2017) en route to 1.1553 (monthly low Nov. 7 2017). On the upside, the next hurdle aligns at 1.1898 (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 consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold pops to two-week highs near $4,150

Gold builds on Wednesday’s sharp rebound and flirts with the $4,150 mark per troy ounce on Thursday. The precious metal extends it recovery on the back of the irresolute price action of the Greenback and mixed US Treasury yields following the US midterms elections.

TRUMP token hits record low amid mounting selling pressure

Ripple and Stellar extend their recovery as bearish pressure begins to ease for both altcoins. XRP trades above $1.30 after breaking above the upper trendline of a falling channel pattern, while XLM holds above $0.168 and approaches resistance at $0.173. Meanwhile, improving derivatives metrics and strengthening momentum indicators hint at a potential for further recovery.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.