EUR/USD Current price: 1.0923
- Financial markets looking stable at the beginning of a new week as concerns recede.
- The United States will publish the July Consumer Price Index next Wednesday.
- EUR/USD is technically neutral in the near term, but bulls hold the grip.
The EUR/USD pair trades uneventfully around the 1.0920 level on Monday, unable to attract investors one way or the other. Financial markets started the week with a calmer mood, as solid gains among US equities on Friday partially offset concerns about the United States´s (US) economic health. A batch of tepid US data fueled speculation about an upcoming recession and triggered bets about larger and sooner interest rate cuts from the Federal Reserve (Fed).
Speculative interest, however, stepped back ahead of key macroeconomic data to be released this week, as the US will publish an update on the Consumer Price Index (CPI) on Wednesday. According to the market forecast, the CPI is forecasted to be 2.9% YoY in July, while the core annual figure is expected to be 3.2% for the same month, both ticking marginally lower from June’s readings. On the same day, the Eurozone will release the second estimate of the Q2 Gross Domestic Product (GDP), estimated at 0.3% QoQ.
Meanwhile, the macroeconomic calendar has little to offer. Germany released the July Wholesale Price Index, which rose 0.3% MoM, improving from -0.3% the previous month. The American session will not bring relevant macroeconomic figures, which means sentiment will likely continue to lead markets’ movements.
EUR/USD short-term technical outlook
From a technical perspective, the EUR/USD pair seems poised to extend its latest cautious advance. In the daily chart, the pair develops above all its moving averages, with the 20 Simple Moving Average (SMA) grinding higher above the longer ones. At the same time, technical indicators hold within positive levels, with modest upward strength. EUR/USD needs to extend gains past 1.0950 to gain bullish traction and retest its recent highs in the 1.1000 region.
EUR/USD is neutral in the near term. In the 4-hour chart, the pair hovers around a flat 20 SMA, while the longer moving averages provide support far below the current level. Finally, technical indicators head nowhere around their midlines, reflecting the absence of speculative interest.
Support levels: 1.0890 1.0845 1.0800
Resistance levels: 1.0950 1.1005 1.1045
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
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD rebounds on Thursday after midweek pullback
EUR/USD tuned back into the high end on Thursday, getting bolstered by a broad-market selloff in the Greenback. US data that printed better than expected helped to ease concerns of a possible economic slowdown within the US economy looming over the horizon.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Ethena Labs launches new UStb stablecoin backed by BlackRock's BUIDL token
Ethena Labs announced on Thursday that it has released a new stablecoin product, UStb. The new stablecoin will be fully collateralized by BlackRock's USD Institutional Digital Liquidity Fund and function similarly to a traditional stablecoin.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.