The single currency continued the winning performance from last week and yesterday rose nearly 60 pips against the dollar to a closing price of 1.1018. Movement scored a peak at 1.1040, while the lowest point was reached at 1.0925. EUR / USD failed to confirm the break of 1.1020, but the price remains above the average values and the indicator of the relative strength hints dominance of the bulls.
EU confirms that Greece and creditors have agreed on terms for third bailout deal
Further confo that a deal has been reached
It was definitely a delayed reaction but euro finding some general demand now
EURUSD 1.1030 EURGBP 0.7066 EURJPY 137.61
German ZEW survey economic sentiment August 25.0 vs 31.9 exp
Latest ZEW survey now out.
Reached target 1.1090 now I wait for the upswing to get exhausted so I can go short.
Not only did EUR/USD bounce off the resistance at 1.1090 but it also formed a great shooting star candlestick on the 4-hour filter chart right under the resistance, so I think we can expect another move to the downside.
EUR/USD moves higher amid Greek breakthrough, Chinese yuan devaluation
EUR/USD moved slightly higher on Tuesday as China spooked foreign exchange markets worldwide with an unexpected devaluation of the yuan, sparking concerns of a potential global currency war.
Separately, Greece agreed on the framework of a multi-year, €86 billion bailout from its international creditors, one officials hope can be completed before the deadline for a critical repayment of a loan expires next week. The deal comes nearly a month after the sides revived talks following a last-minute, historic accord in Brussels. Without the deal, it was feared the cash-strapped nation could default on its sovereign debt and bolt out of the euro triggering possible contagion throughout the zone.
EUR/USD wavered between 1.0961 and 1.1086 on Tuesday, before settling at 1.1042, up 0.0023 or 0.21%. The currency pair closed above 1.10 for the second straight day after closing below the key technical level for 10 previous sessions. The euro is relatively flat against the dollar over the last month, following a minor rally during the last several sessions.
EUR/USD likely gained support at 1.0808 the low from July 20 and was met with resistance at 1.1114, the high from July 31.
Both Greece and its troika of creditors are optimistic the comprehensive bailout can be completed next week ahead of a €3.2 billion obligation the Greek government must repay to the European Central Bank. Greece reportedly agreed to enact a series of at least 35 fiscal modifications to unlock the critical aid. The measures include: sale of state property, significant pension and spending cuts and a gradual phasing out of early retirement benefits.
In China, the People's Bank of China devalued the renminbi to 6.2298 against the dollar on Tuesday, resulting in a 1.9% adjustment from Monday's level of 6.1162 versus the greenback. In response, the Chinese yuan suffered its worst one-day decline in more than a decade and fell to its lowest in three years since the central bank widened the trading band against the dollar in April, 2012.
The single currency continued to add value against the dollar for the fifth consecutive day on Tuesdayby which was trading at two-week high at the end of the session. The euro rose by nearly 20 pips to a closing price of 1.1040. The final values were recorded respectively at 1.1086 and 1.0960. Currently prevailing attitudes are positive, but for continuing growth is necessary to overcome the resistance at 1.1130.
EUR The Best Performer Post CNY Devaluation; Here Is Why? - Credit Agricole
Global markets are still trying to digest the impact from the decision of the PBOC to devalue CNY, which has been weighing on investors’ demand for risk assets.
It appears that the latest development decreased expectations of the Fed considering higher rates as soon as in September. However, it appears premature to make such assumptions, especially as US inflation expectations have been well supported on the back of firm domestic activity
EUR was the best performing G10 currency in the wake of the CNY devaluation. The successful completion of the Greek bailout negotiations seems to have helped it outperform the likes of USD, JPY, GBP and especially CHF.
That said, the EUR-resilience went hand in hand with steep losses in the Eurozone stock markets. In turn this may suggest that (foreign) investors cutting their longs in the EZ asset markets also cut their EUR-shorts on the hedge.
EUR/USD: Euro at 1-Month High as China Endangers US Rate Hike
The European single currency jumped over 1% on Wednesday, as the greenback fell against majors after a surprising devaluation of the renminbi by the Peoples Bank of China overnight.
The pair crossed breefly over the $1.1200 mark and receded soon from the intraday highs, trading some 20 pips lower since then around $1.1180.
The PBoC devalued the renminbi by 2% on Thursday, aiming to improve the export conditions of the local companies. In reaction, dealers poured their funds into US treasuries instead, cutting their US dollar positions.
The sudden step of the PBoC made forex traders reassess their expectations that the Fed will start raising interest rates in September. Investors doubt that the Fed can afford to start tightening its monetary policy when China has decided to take advantage of cheaper yuan.
"The move by the PBoC appears to have unsettled markets as they wonder; is the move part of a desperate attempt to revive China exports, as downside risks to the economy’s growth build; is there more to come; is there potential for the move to delay the US Fed from hiking rates?" BNZ currency strategist Kimberly Martin wrote in a note on Wednesday.
Moreover, the continued easing programs from the Bank of Japan and the European Central Bank, which has seen the CNY strengthen against both their currencies respectively, is undermining China’s export competitiveness. Exports to Japan have declined 10.5% and exports to Europe have declined 2.5%.
it looks like the EUR/USD is heading for fibo 23.6% at price 1.1290.