- The pair fades the bull run to the 1.18 handle earlier in the session.
- The greenback found support in the mid-93.00s so far.
- Markets focused on Italy, US-China trade talks, risk trends.
After a bullish attempt to the 1.1800 region lacked of follow through, EUR/USD has now returned to the 1.1770/80 band where some support appears to have emerged.
EUR/USD looks to Italy, risk trends
After bottoming out near the 1.1700 handle on Monday – or fresh cycle lows – spot managed to regain some attention and closed the first day in the positive territory after five consecutive pullbacks.
Some profit taking around the greenback after the US Dollar clinched fresh YTD tops beyond 94.00 the figure yesterday allowed the pair to reclaim some ground lost.
In the meantime, EUR appears fragile as the formation of a populist government in Italy prompted some concerns to emerge, particularly on the fiscal front. The new government is expected to face a vote of confidence next week while the new cabinet should be ready in the next hours.
Furthermore, large long positions held by the speculative community keep EUR vulnerable to further declines, leaving the door open for a potential re-test of yesterday’s lows.
Nothing expected data wise today, while the focus of attention remains on the FOMC minutes tomorrow and the ECB minutes on Thursday.
EUR/USD levels to watch
At the moment, the pair is losing 0.09% at 1.1780 and a breakdown of 1.1717 (2018 low May 21) would target 1.1700 (psychological level) en route to 1.1553 (monthly low Nov. 7 2017). On the flip side, the next resistance aligns at 1.1842 (10-day sma) seconded by 1.1943 (21-day sma) and finally 1.1996 (high May 14).
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.