EUR/USD Forecast: Bulls about to give up
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFEREUR/USD Current Price: 0.9971
- German data brought encouraging surprises but could not help the EUR.
- Caution persists as market players await policymakers' words in the Jackson Hole Symposium.
- EUR/USD remains vulnerable in the near term and could slide below 0.9900.
The EUR/USD pair ends a third consecutive day with little change in the 0.9970 price zone, down from an intraday high of 1.0032. The dollar shed some ground throughout the first half of the day, weighed by easing government bond yields and a better market mood, recovering ahead of the US opening following better-than-expected US data. Still, financial markets saw limited action as the Jackson Hole Economic Symposium kicked in, with several policymakers expected to provide some hints on future economic policies on Friday.
Data-wise, Germany released the Q2 Gross Domestic Product, which rose by 1.7% YoY, better than the 1.4% previously estimated. In the quarter, it was up by 0.1%, revised from 0% previously. Also, the August IFO survey showed the Business Climate reached 88.5, better than the 86.8 expected. Expectations and the assessment of the current situation were better than anticipated.
Also, The European Central Bank released the minutes of its latest meeting, which showed that a "very large number" of Governing Council members agreed that it was appropriate to raise key rates by 50 basis points and that it was "appropriate to take further steps on the path of monetary policy normalisation."
US data was also encouraging, as the second estimate of the Q2 GDP was upwardly revised from -0.9% to -0.6%. Additionally, Initial Jobless Claims for the week ended August 19 declined to 243K, beating the market expectations.
EUR/USD short-term technical outlook
The daily chart shows that buying interest is still limited, as the pair remains well below bearish moving averages. The long upward wick in the current candle suggests bulls may soon give up. Meanwhile, the RSI indicator stands directionless around 34, while the Momentum indicator ticked higher but remains well below its midline.
The 4-hour chart shows mounting selling pressure. After breaking above it, the pair is currently pressuring a bearish 20 SMA, a few pips below the current level. At the same time, technical indicators turned sharply lower, the Momentum now developing around its midline, but the RSI is already within negative levels. Finally, the 100 SMA crosses below the 200 SMA, converging around 1.0150.
Support levels: 0.9920 0.9880 0.9840
Resistance levels: 1.0010 1.0050 1.0105
EUR/USD Current Price: 0.9971
- German data brought encouraging surprises but could not help the EUR.
- Caution persists as market players await policymakers' words in the Jackson Hole Symposium.
- EUR/USD remains vulnerable in the near term and could slide below 0.9900.
The EUR/USD pair ends a third consecutive day with little change in the 0.9970 price zone, down from an intraday high of 1.0032. The dollar shed some ground throughout the first half of the day, weighed by easing government bond yields and a better market mood, recovering ahead of the US opening following better-than-expected US data. Still, financial markets saw limited action as the Jackson Hole Economic Symposium kicked in, with several policymakers expected to provide some hints on future economic policies on Friday.
Data-wise, Germany released the Q2 Gross Domestic Product, which rose by 1.7% YoY, better than the 1.4% previously estimated. In the quarter, it was up by 0.1%, revised from 0% previously. Also, the August IFO survey showed the Business Climate reached 88.5, better than the 86.8 expected. Expectations and the assessment of the current situation were better than anticipated.
Also, The European Central Bank released the minutes of its latest meeting, which showed that a "very large number" of Governing Council members agreed that it was appropriate to raise key rates by 50 basis points and that it was "appropriate to take further steps on the path of monetary policy normalisation."
US data was also encouraging, as the second estimate of the Q2 GDP was upwardly revised from -0.9% to -0.6%. Additionally, Initial Jobless Claims for the week ended August 19 declined to 243K, beating the market expectations.
EUR/USD short-term technical outlook
The daily chart shows that buying interest is still limited, as the pair remains well below bearish moving averages. The long upward wick in the current candle suggests bulls may soon give up. Meanwhile, the RSI indicator stands directionless around 34, while the Momentum indicator ticked higher but remains well below its midline.
The 4-hour chart shows mounting selling pressure. After breaking above it, the pair is currently pressuring a bearish 20 SMA, a few pips below the current level. At the same time, technical indicators turned sharply lower, the Momentum now developing around its midline, but the RSI is already within negative levels. Finally, the 100 SMA crosses below the 200 SMA, converging around 1.0150.
Support levels: 0.9920 0.9880 0.9840
Resistance levels: 1.0010 1.0050 1.0105
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.