EURUSD tumbles to daily lows near 1.1820


  • EUR/USD loses further ground and recedes to the 1.1820 area.
  • The dollar’s rebound looks to pick up extra pace on Friday.
  • US final Consumer Sentiment for the month of July next on tap.

Following earlier +2-year peaks just beyond 1.19 the figure, EUR/USD seems to have embarked on a correction lower to the current 1.1820 region at the end of the week,

EUR/USD closing its sixth consecutive week with gains

EUR/USD briefly tested the area just above the 1.19 barrier during early trade on Friday, always on the back of the persistent offered bias hurting the greenback.

In the meantime, the dollar continues to reclaim ground lost and therefore keeping EUR/USD under some modest downside pressure. Higher US yields plus oversold conditions in most of the risk complex appear among the drivers of the buck’s bullish attempt.

In the docket, the flash headline CPI in the euro bloc is seen rising 0.4% YoY, while Core CPI is expected to gain 1.2% on a year to July. Additional data in Euroland saw a historic slump in the GDP, showing the economy is predicted to contract at an annualized 15% and 12.1% inter-quarter in Q2.

Across the Atlantic, the Core PCE gained 0.2% inter-month in June and 0.9% from a year earlier. The final print of the U-Mich index will close the weekly calendar later in the NA session.

What to look for around EUR

EUR/USD recorded fresh tops just above the 1.19 yardstick at the end of the week, confirming once again the solid momentum around both the single currency and the rest of its risky peers. The sharp move up, while largely triggered by dollar-selling, has found extra sustain in auspicious results from the domestic docket, in turn supporting further the view of a strong economic recovery following the coronavirus fallout. Also lending wings to the momentum around the euro, the recently clinched deal on the European Recovery Fund helped putting political fears within the region to rest (for now), while the solid position of the current account in the region adds to the rally.

EUR/USD levels to watch

At the moment, the pair is losing 0.25% at 1.1817 and faces immediate contention at 1.1709 (38.2% Fibo of the 2017-2018 rally) followed by 1.1495 (monthly high Mar.9) and finally 1.1448 (50% Fibo of the 2017-2018 rally). On the upside, a breakout of 1.1909 (2020 high Jul.31) would target 1.1996 (high May 14 2018) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally).

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bid above 1.18 as US 10-year yield drops

EUR/USD has cleared hurdle at 1.18 alongside a decline in US yields. The US 10-year yield has retreated from five-week highs. A fiscal impasse in Washington is likely weighing over yields and the dollar. 

EUR/USD News

GBP/USD shrugs off recession fears to keep bounce off 1.3000

GBP/USD eases from highs of 1.3073 while heading into the London open on Thursday. Even so, the pair keeps its pullback from the previous day’s low of 1.3005. UK GDP confirms recession. US Jobless Claims, risk catalysts in focus.

GBP/USD News

Gold: $1907 is the last straw for the XAU/USD bulls

Gold consolidates the $90 bounce below $1950, having witnessed good two-way volatility on Wednesday. Falling US Treasury yields continue to pressure the US dollar across the board, supporting the yieldless gold.

Gold News

US Jobless Claims Preview: Lower claims sign of an economic acceleration?

When initial jobless claims jumped 10% in the middle of July speculation connected the increase with the Covid prompted economic rollbacks in several Southern and Western states. Initial jobless claims expected to edge down from pandemic low.

Read more

WTI: Bulls attack $43.00 inside short-term rising channel

WTI defies the previous day’s pullback from $43.12 with a bounce off $42.76. The energy benchmark flaunted the biggest gains in a month on Wednesday while keeping a one-week-old ascending trend channel formation.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures