- Broad-based USD weakness pushed EUR/USD higher to the confluence of symmetrical triangle hurdle and 55-day moving average (MA).
- The key hurdle would be breached if the US-German (DE) yield differentials continue to slide.
- A bull breakout, if confirmed, could be followed by a sustained move above 1.15.
The EUR/USD pair could cross the key technical resistance 1.1435 in Europe, having rallied 0.4 percent in Asia.
Friday's non-farm payrolls release and a below-forecast China import and export growth figure released over the weekend likely bolstered the fears of a global growth slowdown and prospects of Fed rate pause in 2019. As a result, Asian desks offered the greenback across the board.
Notably, the dollar sell-off is likely to continue in Europe, as the dovish turn in Fed expectations could push the 10-year US-German yield differentials to new multi-month lows. As of now, the 10-year yield spread stands at 259 basis points - a level last seen on Sept. 28.
So, the critical resistance at 1.1435 - a level which marks the confluence of the 55-day MA and the trendline connecting the Nov. 11 and Nov. 20 high (upper edge of the symmetrical triangle) - could be scaled in Europe.
A daily close above 1.1435 would confirm a triangle breakout and allow a sustained move above 1.15. The bull breakout, however, may remain elusive if the treasury yields turn higher.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1427
Today Daily change: 16 pips
Today Daily change %: 0.140%
Today Daily Open: 1.1411
Trends:
Previous Daily SMA20: 1.1353
Previous Daily SMA50: 1.1417
Previous Daily SMA100: 1.1515
Previous Daily SMA200: 1.1742
Levels:
Previous Daily High: 1.1424
Previous Daily Low: 1.136
Previous Weekly High: 1.1424
Previous Weekly Low: 1.1311
Previous Monthly High: 1.15
Previous Monthly Low: 1.1216
Previous Daily Fibonacci 38.2%: 1.14
Previous Daily Fibonacci 61.8%: 1.1385
Previous Daily Pivot Point S1: 1.1373
Previous Daily Pivot Point S2: 1.1335
Previous Daily Pivot Point S3: 1.131
Previous Daily Pivot Point R1: 1.1437
Previous Daily Pivot Point R2: 1.1462
Previous Daily Pivot Point R3: 1.15
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 treads water below 0.6750 amid dour mood
AUD/USD is off the highs, holding steady below 0.6750 in Asian trading on Friday. A broad US Dollar pullback underpins the pair but the further upside appears capped due to a tepid risk tone. Traders look forward to US PPI inflation data for fresh trading directives.
USD/JPY rises toward 149.00 despite softer risk tone
USD/JPY has picked up fresh bids and approaches 149.00 in Friday's Asian session. The BoJ rate hike uncertainty undermines the Japanese Yen and acts as a tailwind for the pair. However, a dour mood and the US Dollar consolidation could limit the pair's renewed upside. US data eyed.
Gold price recovers further from multi-week low touched on Thursday
Gold price builds on the previous day's goodish bounce from the $2,600 neighborhood, or a three-week low and gains positive traction for the second straight day amid subdued USD demand. A surge in US jobless claims pointed to initial signs of labor market weakness and should allow the Fed to keep cutting rates.
SEC sues Cumberland DRW for acting as an unregistered securities broker, Solana ETFs at risk
The Securities & Exchange Commission filed a lawsuit on Thursday against Chicago-based trading firm Cumberland DRW for operating as an unregistered securities dealer. The regulator mentioned several cryptocurrencies in the suit.
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.