The currency pair EURUSD, currently trading at 1.07092, has experienced a small increase to approximately 1.0725 due to the decline in the value of the US Dollar.
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- EUR/USD posts a modest gain around 1.0725 amid the weakening US Dollar.
The pair currently trades last at 1.07092.
The previous day high was 1.0744 while the previous day low was 1.0694. The daily 38.2% Fib levels comes at 1.0725, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0713, expected to provide resistance.
The EUR/USD pair recovers some lost ground around 1.0725 after bouncing off the low of 1.0697. The rebound of the major pair is bolstered by the downward pressure on the US Dollar. Meanwhile, the US Dollar Index (DXY) corrects Lower to 104.70.
US Treasury Secretary Janet Yellen said on Sunday that she is becoming more convinced that the US will be able to curb inflation without causing major impacts on the labor market. She added that every gauge of inflation is erasing and there was no massive wave of layoffs.
The upbeat US economic data last week lends support to the higher for longer interest rate narrative in the US. The markets have been priced in the possibility of a 93% chance of a rate hold at the September meeting and a 43.5% chance of a rate hike at the November meeting, according to the CME FedWatch Tool. This, in turn, might lift the US Dollar (USD) and cap the upside of the EUR/USD.
The Fed Governor Christopher Waller said that the Fed has extra room to raise interest rates, but the data will determine it. While, Fed Boston President Susan Collins pointed out the risk of an inappropriately restrictive monetary policy stance and called for a patient and careful, but deliberate policy. Chicago Fed President Austan Goolsbee outlined the central bank’s goal of leading the economy into a “golden path.” This route represents a scenario in which inflation falls without causing a recession.
On the Euro front, analysts believe the European Central Bank (ECB) will maintain interest rates unchanged at its next policy meeting on Thursday. Destatis data released on Friday indicated that the German Harmonised Consumer Price Index (HICP) for August came in at 6.4% YoY, as expected by the market, while the core CPI remained steady at 6.1%. Furthermore, Eurozone GDP increased by 0.1% in the second quarter (Q2), compared to 0.3% in the previous quarter and 0.3% estimated.
On Wednesday, investors will closely watch the release of the US Consumer Price Index (CPI) for August. The monthly figure is anticipated to increase by 0.5%, while the monthly core figure is anticipated to remain unchanged at 0.2%. On Thursday, the focus will shift to the ECB’s monetary policy. The event could provide the EUR/USD pair with a clear direction.
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0721 at the time of writing. Pair opened at 1.0701 and is trading with a change of 0.19 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0721 |
| 1 | Today Daily Change | 0.0020 |
| 2 | Today Daily Change % | 0.1900 |
| 3 | Today daily open | 1.0701 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0827, 50 SMA 1.095, 100 SMA @ 1.091 and 200 SMA @ 1.0823.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0827 |
| 1 | Daily SMA50 | 1.0950 |
| 2 | Daily SMA100 | 1.0910 |
| 3 | Daily SMA200 | 1.0823 |
The previous day high was 1.0744 while the previous day low was 1.0694. The daily 38.2% Fib levels comes at 1.0725, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0713, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.0682, 1.0663, 1.0632
- Pivot resistance is noted at 1.0732, 1.0763, 1.0781
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0744 |
| Previous Daily Low | 1.0694 |
| Previous Weekly High | 1.0809 |
| Previous Weekly Low | 1.0686 |
| Previous Monthly High | 1.1065 |
| Previous Monthly Low | 1.0766 |
| Daily Fibonacci 38.2% | 1.0725 |
| Daily Fibonacci 61.8% | 1.0713 |
| Daily Pivot Point S1 | 1.0682 |
| Daily Pivot Point S2 | 1.0663 |
| Daily Pivot Point S3 | 1.0632 |
| Daily Pivot Point R1 | 1.0732 |
| Daily Pivot Point R2 | 1.0763 |
| Daily Pivot Point R3 | 1.0781 |
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