EUR/USD tumbles to fresh lows near 1.1020


  • EUR/USD drops to new 2-day lows in the 1.1020 area.
  • USD-buying is fuelling the recovery in DXY.
  • Key support comes in at 1.0990 (Monday/Tuesday low).

The selling pressure is now picking up pace around the European currency and is dragging EUR/USD to new 2-day lows in the 1.1020/15 band.

EUR/USD weaker on stronger Dollar

The pair has accelerated the daily downside on Friday after breaking below the 100-hour and the 200-hour SMAs in the 1.1040 region, all on the back of the renewed pick up in the demand for the buck.

The Greenback has reversed the initial pessimism and is now advancing to fresh tops in the mid-98.00s, putting spot under extra pressure. Additionally, it seems that sentiment improved further around the Greenback after another repo operation by the Fed saw funding pressures subside somewhat and the Fed Fund rate drop to 1.90%.

In the euro docket, German Producer Prices contracted at a monthly 0.5% during August and rose 0.3% over the last twelve months, missing (once again) initial estimates.

What to look for around EUR

The single currency is extending the choppy trading so far this week in the wake of the key FOMC gathering on Wednesday. EUR lost some shine following the recent peaks beyond 1.11 the figure, recorded after the ECB announced €20 billion/month in bond purchases under the re-launched QE programme. The occasional recovery in spot, however, is seen as corrective only always against the backdrop of unremitting slowdown in the region, looser for longer monetary conditions by the ECB and the likelihood that the German economy could slip into technical recession in Q3. Adding to this gloomy scenario, potential US tariffs on imports of EU cars remain well on the table, while persistent uncertainty around Brexit adds to the downbeat outlook.

EUR/USD levels to watch

At the moment, the pair is retreating 0.25% at 1.1013 and a break below 1.0990 (low Sep.16) would target 1.0925 (2019 low Sep.3) en route to 1.0839 (monthly low May 11 2017). On the opposite side, the next up barrier lines up at 1.1109 (monthly high Sep.13) seconded by 1.1163 (high Aug.26) and finally 1.1175 (100-day SMA).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.

 

EUR/USD News

GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.

GBP/USD News

USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.

USD/JPY News

Gold slumps to $1,480 area on Brexit hopes

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday.

Gold News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Forex MAJORS

Cryptocurrencies

Signatures