- US dollar weakness, widening German-Italian yield spread aids the EUR/USD rebound.
- Focus shifts to Eurozone PMIs and FOMC minutes amid a data-dry calendar today.
The EUR/USD pair faced rejection once again near 1.1540 levels and reversed from weekly tops to test the 1.15 handle before running into fresh buyers ahead of the last.
At the press time, the spot is seen extending its tepid bounce near 1.1525, as the US dollar continues to gyrate near one-week troughs of 96.46, with Trump’s Fed criticism still weighing down on the buck.
Despite the latest leg higher, it remains to be seen if the spot can take out the key resistance located near 1.1540 region. According to the technical confluence indicator, “the pair has resistance at around 1.1545 where we see the congestion of the Pivot Point one-week R2, the one-hour high, the four-hour high, the PP one-day R2, and the Bolinger Band 15m-Upper. This could limit any upside,” FXStreet’s Analyst Yohay Elam notes.
In the day, the EUR bulls could gain further momentum on the back of widening German-Italy 10-year yield spread, as Italy political worries resurface. However, the USD dynamics will continue to remain the key driver amid a lack of fresh fundamental catalysts, as the focus shifts to the FOMC minutes due tomorrow.
EUR/USD Technical Levels
Slobodan Drvenica at Windsor Brokers, notes: “Monday's close above pivots at 1.1454 (10SMA) and 1.1470 (Fibo 38.2% of 1.1745/1.1302 descend) confirmed Doji reversal pattern on daily chart and generated a bullish signal for recovery extension. Fresh bulls faced so far strong headwinds at 1.1445 resistance zone and may hold in extended consolidation before fresh attempts higher, with overbought slow stochastic supporting scenario. Extended dips should be contained above broken 10SMA to keep near-term bulls in play for the renewed attack at 20SMA / weekly cloud base pivotal barriers. Break and close above 20SMA would be bullish signal for recovery extension towards 1.1575/83 (Fibo 61.8% / falling 30SMA) and 1.1627 (55SMA).”
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 below 1.0550 ahead of US data
EUR/USD trades in the red below 1.0550 as investors await macroeconomic data releases from the US. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU.
GBP/USD pressured toward 1.2600, eyes on US data and Fedspeak
GBP/USD stays on the back foot and trades below 1.2650 on Thursday. The pair's underperformance could be attributed to a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions ahead of mid-tier US data and Fedspeak.
Gold extends gains beyond $2,660 amid rising geopolitical risks
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. US data and Fedspeak are next in focus.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.