EUR/USD remains under pressure after short-lived rebound


  • US dollar loses momentum on risk appetite.
  • Market participants turn attention to Jackson Hole.
  • EUR/USD unable to recover 1.0000, holds near 20-year lows.

The EUR/USD rose from the daily low at 0.9907 to 0.9998 in a few minutes around the London fix, on the back of a broad-based slide of the US dollar. The euro failed to hold to gains and pulled back to the 0.9950 area.

The greenback weakened even as US yields held at daily highs. The improvement in risk sentiment weighed on the dollar. The Dow Jones is up by 0.37% and the Nasdaq gains 0.80%. The DXY printed a fresh , daily low at 108.36 and, as of writing, it is hovering around 108.70, up 0.22% for the day.

Data released on Wednesday showed Durable Goods Orders stood flat in July against expectations of a 0.6% rise and Pending Home Sales declined 1%, less-than-expected. The numbers did not have a significant impact on markets that are turning their attention to the Jackson Hole symposium.

Fed Chair Powell will deliver his speech on Friday. “While some may be looking for an explicit policy signal, we believe the Fed will leave all options open for the September 20-2 FOMC meeting. However, we expect Chair Powell and his colleagues to maintain a very hawkish tone at the symposium. We also give an overview of current U.S. economic conditions,” explained analysts at Brown Brothers Harriman.

The EUR/USD remains under pressure, unable to sustain a recovery. Another test of 0.9900 over the next sessions should not be ruled out. A break lower could trigger more losses, with the next support seen around 0.9860. A firm break above 1.0000 could alleviate the bearish pressure, particularly if the euro manages to recover 1.0030.

Technical levels

EUR/USD

Overview
Today last price 0.9967
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 0.9969
 
Trends
Daily SMA20 1.0173
Daily SMA50 1.0258
Daily SMA100 1.0458
Daily SMA200 1.0848
 
Levels
Previous Daily High 1.0018
Previous Daily Low 0.9901
Previous Weekly High 1.0268
Previous Weekly Low 1.0032
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci 38.2% 0.9973
Daily Fibonacci 61.8% 0.9946
Daily Pivot Point S1 0.9907
Daily Pivot Point S2 0.9845
Daily Pivot Point S3 0.9789
Daily Pivot Point R1 1.0025
Daily Pivot Point R2 1.008
Daily Pivot Point R3 1.0142

 

 

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