- The pair stays depressed near the 1.1600 neighbourhood on EMU CPI.
- The greenback extends the up move to fresh tops near 95.40.
- EMU CPI rose 0.1% MoM and 2.0% YoY. Core CPI missed consensus.
The selling bias around the European currency remains well and sound in the middle of the week, with EUR/USD hovering over the 1.1620/15 band, or fresh daily lows.
EUR/USD weaker on USD-buying, data
The renewed and strong buying interest surrounding the greenback is keeping spot under extra downside pressure so far this week, dragging it to new multi-day lows in the 1.1620/15 band.
Collaborating with the pair’s downside, final headline inflation figures in the euro area matched estimates in June, although the Core print came in below the preliminary readings, showing consumer prices came in flat MoM and rose 0.9% YoY (vs. 1.0% forecasted).
In the meantime, the pair is losing ground for the second consecutive session today, while further downside is expected following yesterday’s bearish ‘outside day’ candle.
EUR/USD levels to watch
At the moment, the pair is losing 0.32% at 1.1623 and a breakdown of 1.1608 (low Jul.18) would open the door to 1.1527 (low Jun.29) and finally 1.1508 (2018 low May 30). On the upside, the initial hurdle aligns at 1.1662 (21-day sma) seconded by 1.1695 (10-day sma) and finally 1.1718 (monthly low Dec.12 2017).
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.