EUR/USD turns flat below 1.14 as DXY clings to gains above 96

  • Today's strong data from the U.S. helps greenback gather strength.
  • US Dollar Index remains on track to close second straight day higher.
  • Annual CPI in Germany rises to 1.6% in February.

The EUR/USD pair rose to its highest level since February 5 at 1.1420 earlier in the day but failed to preserve its momentum in the second half of the day. As of writing, the pair was virtually unchanged on a daily basis at 1.1372.

The broad USD weakness during the European trading hours allowed the pair to puısh higher above the 1.14 handle. However, with the U.S. Bureau of Economic Analysis in its initial estimate announcing that the real GDP is seen expanding 2.6% in the fourth quarter and the ISM-Chicago's PMI rising to its best level in 14 months, the dollar started to outperform its rivals and forced the pair to retrace its daily advance. At the moment, the US Dollar Index is up 0.1% on the day at 96.20 and looking to close the second straight day in the positive territory.

Additionally, following impressive upsurge, the 10-year US T-bond yield extended its rally and climbed to its highest level in more than three weeks to provide additional support to the buck.

On the other hand, Destatis today reported that the annual CPI (preliminary) in February in Germany rose to 1.6% from 1.4% in January and surpassed the market expectation of 1.4%, but was largely ignored by the market participants.

Technical outlook by FXStreet Editor Pablo Piovano

The ongoing bull move in EUR/USD is expected to meet quite a tough hurdle in the 1.1440/50 band, where are located a Fibo retracement (of the September-November drop) and the short-term resistance line (off September highs beyond 1.1800). This is considered the last defence for a potential re-visit to the 1.1500 neighbourhood and beyond. On the downside, recent lows in the mid-1.1300s appear reinforced by another Fibo retracement (at 1.1356), the 21-day SMA (at 1.1350) and the 10-day SMA (at 1.1342). On a broader picture, the critical 200-week SMA (at 1.1335) is a strong support and is expected to hold the downside on a resumption of a bearish move. As long as this area caps, the near term outlook for the pair should remain constructive.

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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays sidelined around 1.1650, monthly resistance line in focus

EUR/USD picks up bids to 1.1642, keeping the two-day advances intact during the early Asian session on Monday. The currency major pair stays firmer above 10-day and 21-day EMAs amid bullish MACD signals. August month’s low adds to the upside filters.


GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.


Gold: Bears lurking at weekly trendline resistance

The price of gold has been supported by a dynamic weekly/daily trendline where bulls consolidated and finally made a break for the upside in the latter part of the week. The price move into the $1,800s but has failed to take out the weekly trendline resistant, so far. 

Gold News

Crypto bulls unfazed by flash crash

BTC closed more than 5% lower on the Thursday session, but buyers have stepped in to hold the Tenkan-Sen as support. ETH action shows that the recent rejection has caused some indecision. XRP does not have far to move to initiate a massive bullish breakout.

Read more

Apple talks over battery supplies for EV stall-Reuters

Apple (AAPL) is on a steady move higher ahead of results next week. We have had solid earnings from big names already such as Tesla (TSLA) and Netflix (NFLX), but Apple is the biggest one of all and will be the highlight of the earnings season for many.

Read more