EUR/USD Current price: 1.1801
The EUR/USD pair trades barely above the 1.8000, up from a daily low of 1.1780, as the dollar was generally lower against most of its major rivals early London, exception the Canadian dollar, helping the common currency that lacks strength of its own amid political jitters in the region. The pair gapped lower at the weekly opening, hurt by headlines indicating that the German Social Democrat party beat Angela's Merkel ruling one in Lower Saxony, and comments from Fed's head Yellen, who offered a confident outlook on inflation and the economy, nothing that the market didn't heard before. Another factor weighing on the EUR is the situation in Spain, as Catalonia President Carles Puigdemont avoided to clarify whether he declared independence or not, and asked for a two-month window of dialogue, whilst the central goernment, through Spanish Vice President/ Deputy PM, Soraya Saenz de Santamaria, answered that they are still waiting for an answer that should be delivered not later than early Thursday.
In the data front, the EU release its August trade balance data, which recorded a surplus of €16.1B compared with €17.5B a year earlier, missing market's expectations. Ahead of Wall Street's opening, the greenback got a short-lived boost from the New York Empire manufacturing index, which came in much better-than-expected, at 30.2 from previous 24.4, its highest in over three years.
From a technical point of view, the pair has made little progress during the last two sessions, still trading in the red when compared to Friday's close. In the 4 hours chart, the price has managed to regain ground above a bearish 100 SMA, but still below the 20 and 200 SMAs, while technical indicators remain within negative territory, losing the limited upward strength they presented earlier today. The upward scope seems limited by selling interest on approaches to 1.1820, and seems there won't be today a trigger that can push the level beyond it. If it happens, however, the pair has scope to extend its gains up to the 1.1850 region. To the downside, the 50% retracement of the latest bullish run stands at 1.1775, while the pair has a static support a few pips below the level, in the 1.1760 region. Below this last, the 1.1720 comes next ahead of the critical 1.1660 region.
Support levels: 1.1760 1.1720 1.1660
Resistance levels: 1.1850 1.1890 1.1930
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.