Having peaked near 1.1780 levels in the Asian trades, the EUR/USD pair gradually extended lower, now flirting with daily lows struck at 1.1759 last minutes.
EUR/USD trades below 20-DMA at 1.1779
The latest leg down in the spot is mainly driven by resurgent USD demand against its main competitors, tracking the renewed strength seen in Treasury yields across the time horizon, as upbeat US fundamentals continue to back the case for a Dec Fed rate rise. Meanwhile, Trump’s commitment on the tax overhaul plan also adds to the buoyant tone seen around the buck.
Trump: Want tax reform "by Christmas"
From the short-term perspective, any upside in the EUR/USD pair is likely to be short-lived until the Catalan crisis gets resolved, provided Catalonia’s President Puigdemont clarifies whether he wants to declare independence or not until the deadline ending tomorrow.
Moreover, downbeat German ZEW surveys and unimpressive Eurozone final CPI figures also add to the weight on the Euro. German Oct ZEW economic sentiment improves slightly, but misses estimates
Markets now look forward to the ECB speaks due today, with President Draghi expected to speak on regulatory reforms, while speeches from ECB’s Praet and Coeure will also be closely heard ahead of the Fedspeaks and US housing data due later on Wednesday.
EUR/USD Technical View
Haresh Menghani, Analyst at FXStreet notes: “With short-term technical indicators holding in negative territory, the pair remains poised to head towards testing the 1.1700 mark. Weakness below the mentioned handle might continue to find strong support near the 1.1675-70 horizontal zone.”
“On the upside, any recovery attempts might now confront fresh supply near the 1.1800 handle. Even if the pair manages to clear this immediate barrier, any further up-move should now be capped at a short-term descending trend-line resistance, currently near the 1.1830 region, also coinciding with 38.2% Fibonacci retracement level of 1.2092-1.1669 recent slide,” Haresh adds.
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.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.