EUR/USD turns negative around 1.1880, dollar regains the smile


  • EUR/USD fades the earlier move to levels past 1.1900.
  • EMU flash Q2 GDP rose 2.0% QoQ, 13.7% YoY.
  • US Core PCE came in short of estimates in June.

EUR/USD came under some selling pressure soon after hitting fresh monthly peaks in levels north of 1.19 the figure on Friday.

EUR/USD now looks to a test of 1.1975

EUR/USD now sees its upside momentum mitigated on the back of some mild recovery in the greenback.

In fact, the pair corrects lower following the early move beyond 1.19 and after spot hit the overbought territory on the hourly chart (as per the RSI). Furthermore, EUR/USD remains on track to close the week in the positive ground following two consecutive weekly pullbacks.

Positive results in the euro docket are also supportive of the upbeat momentum in the pair after preliminary GDP figures in the euro area now see the region expanding 2.0% QoQ during the April-June period and 13.7% from a year earlier. In Germany, the economy is now expected to expand 1.5% inter-quarter and 9.6% on an annualized basis.

Regarding inflation in Euroland, flash data now see the headline CPI rising 2.2% vs. July 2020 and 0.7% when comes to the Core CPI.

In the US, the inflation tracked by the PCE rose 4% YoY in June and 3.5% excluding food and energy costs. Additional data noted the Personal Spending expanded 1.0% MoM during last month and Personal Income rose 0.1% MoM.

Later in the NA session, the final U-Mich print for the month of July will close the weely docket.

EUR/USD levels to watch

So far, spot is down 0.05% at 1.1879 and a breakdown of 1.1751 (monthly low Jul.21) would target 1.1704 (2021 low Mar.31) en route to 1.1602 (November 2020 low). On the upside, the next hurdle is located at 1.1908 (weekly high Jul.30) followed by 1.1975 (weekly high Jun.25) and finally 1.2004 (200-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. 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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures