EUR/USD Current Price: 1.0807

  • Inflation and employment updates from the United States and the Eurozone stand out this week.
  • China's measures to boost the Yuan put pressure on the US Dollar at the weekly opening.
  • EUR/USD could resume its decline once below 1.0790, the immediate support level.

The US Dollar gave up some of last week's gains on Monday as China announced another round of measures to boost the battered Yuan. The EUR/USD pair peaked at 1.0820 during Asian trading hours, as local share markets benefited from the Chinese decision to reduce the stamp duty on stock trading by 50%. The People's Bank of China (PBoC) also set a higher-than-anticipated fixed rate for USD/CNY. The announcements kept Asian shares afloat, leading to modest gains in European markets.

 At the same time, market participants are trying to assess Federal Reserve (Fed) Chairman Jerome Powell's words. Speaking at the Jackson Hole Economic Symposium on Friday, Powell repeated that they are prepared to raise rates further if appropriate but added they would "proceed carefully" when deciding whether to raise interest rates again.

Nevertheless, the USD is fighting back ahead of Wall Street's opening. EUR/USD hovers around the 1.0800 mark as investors stay on the safe ground ahead of multiple first-tier events spread throughout the week. Over the upcoming days, Germany and the Euro Zone will publish the preliminary estimates of the preliminary estimates of the respective Harmonized Index of Consumer Prices (HICP) for August. On the other hand, the United States (US) will publish the July Core Personal Consumption Expenditures (PCE) Price Index, the Fed's favorite inflation measure, and multiple employment figures ahead of the August Nonfarm Payrolls report on Friday. A holiday in the United Kingdom (UK) exacerbates the quietness on Monday.

Data-wise, the EU published July M3 Money Supply, which fell by 0.4% YoY. The American session will bring the August Dallas Fed Manufacturing Business Index, foreseen at -21.6 from -20 in the previous month.

EUR/USD short-term technical outlook

The daily chart for the EUR/USD pair shows it is stuck around a mildly bullish 200 Simple Moving Average (SMA) while the 20 SMA extends its slide below the 100 SMA, both well above the current level. Technical indicators, in the meantime, bounced modestly from their recent lows with limited upward strength and still well below their midlines. The chances of a steeper recovery seem limited as the pair would need to advance beyond 1.0930 to attract buyers.

The 4-hour chart shows that the risk remains skewed to the downside. A bearish 20 SMA at around the daily high rejects advances, while the longer moving averages gain bearish traction well above it. At the same time, technical indicators remain within negative levels without clear directional strength. Selling interest will likely increase if the pair falls below 1.0790, the immediate support level.

Support levels:  1.0790 1.0740 1.0705

Resistance levels: 1.0840 1.0885 1.0930  

View Live Chart for EUR/USD 

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


Recommended Content

Editors’ Picks

EUR/USD hovers around 1.0800 on Fed's decision

EUR/USD hovers around 1.0800 on Fed's decision

EUR/USD returned to the 1.0800 price zone after the Federal Reserve announced its decision to cut the benchmark interest rate by 25 bps as widely anticipated.  Chair Jerome Powell's remarks put mild pressure on the US Dollar. 

EUR/USD News
USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim

USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim

USD/JPY hovers around 153.80 after the Fed broadly met market expectations on November's rate call. The Fed delivered a follow-up quarter-point cut on Thursday; markets now bet on the odds of a December three-peat. 

USD/JPY News
Gold regains $2,700 with Fed’s announcement

Gold regains $2,700 with Fed’s announcement

Gold extends its recovery following Wednesday's sharp decline and trades above $2,700, as the US Dollar eases following the Federal Reserve's decision to cut rates by 25 bps. Powell's speech revolved around Trump's victory. 

 

Gold News
Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high

Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high

Ethereum (ETH) is up nearly 8% on Thursday and could reach a new all-time high before year-end following increasing investor demand for the top altcoin. This is visible in ETH's open interest growth and increasing Ethereum exchange-traded funds (ETF) inflows.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures