EUR/USD continued to lose for the second consecutive session on Wednesday. The euro depreciated by nearly 200 pips to a closing price of 1.1312. The daily limit values were reached respectively at 1.1560 and 1.1291. The chart continues to develop over upward moving averages, but the relative strength index passed the negative territory. A break of 1.1290 will contribute to the bearish sentiment.
Yesterday EURUSD fell breaking below the inside day made on Tuesday and close near the low of the day on a wide range day as the US durable goods rose unexpected to 2% compared to the market expectations for a decline of 0.4%. Key levels to watch today are: the daily support zone from 1.1237 down to 1.1097.
EUR/USD pull back for the third day with high volatility price will be testing support level 1.1200 and then the MA(20).
EUR/USD reached the support at 1.1190 coinciding with the (89)MA on the four-hour filter chart. So far it hasn't been able to break below that level but should it manage to do so I think we can expect a further move to the downside towards target 1.1080.
France PPI July mm -0.1% vs +0.1% prev
Data out just now. Not a price mover but a reflection of softer prices generally. Inflation not going up any time soon
German regional CPI coming up soon
The euro continued to lose against the dollar for a third consecutive day on Thursday and is about to record a negative week. The single currency has lost nearly 70 pips to a closing price of 1.1244. The daily limit values were reached respectively at 1.1363 and 1.1202. The price overcame the 50-period moving average, while the relative strength index remains negative in territory. Breaking the 1.1180 level will support the bearish sentiment.
Yesterday the EURUSD fell for the 3rd consecutive day but with a narrow range (fading downward momentum) and closed in the red near the low of the day. The currency held on a daily support at 1.1237 where it can be at a good turning point but a close above the 10-day moving average may suggest the end of the current pullback and the start of another bullish move.
EURUSD dives below 1.1200 as USDJPY rises. It smells of end of month
Fischer waffle might be fingered for the moves but I earlier mentioned end of month dollar demand vs euro
I've not had any confirmation yet but to see EURUSD dive late in the day while USDJPY rises as all other dollar pairs stay more or less stable, suggests flows out of the euro
Earlier I noted that there was said to be strong USD demand against the euro for month end and while that was tipped for Monday we could be seeing it go through now. There may be some inclination to do it before the weekend and any possible risk from Jackson Hole or Asia
EURUSD drops to 1.1182 from 1.1230 pretty quickly
The euro is taking it in the crosses too and suffering against CHF, JPY and GBP
There's a decent looking set up in EURUSD near here via the DMA's around 1.1120/30 but it might be a bit late in the day to get into a trade ahead of the weekend
EUR/USD broke the psychological support 1.1200 and now heading for the next support line 1.1160. but I don't think there will be a break before the market close.
EUR/USD moves lower, following Fischer's comments on possible rate hike
- EUR/USD crashed below 1.12 on Friday capping a frenetic week of fluctuations, after market-moving comments from an influential member of the Federal Reserve on the increasing possibility of a September interest rate hike pushed the dollar broadly higher.
The currency pair wavered between 1.157 and 1.1310 on Friday before settling at 1.1187, up 0.0058 or 0.52% on the session. Over the last five days of trading, EUR/USD experienced one of its most volatile weeks of the year trading between a range of 1.11 and 1.17. After surging by more than 2% in Monday's session, the euro has fallen against the dollar in four consecutive sessions. For the week, EUR/USD closed lower by approximately 1.75%.
EUR/USD likely gained support at 1.1015, the low from August 18 and was met with resistance at 1.1713, the high from Aug. 24.
Speaking exclusively with CNBC, Fed vice chairman Stanley Fischer indicated that recent U.S. economic data had been impressive providing a compelling argument for short-term rates to head in a higher direction. Without explicitly stating that the U.S. central bank will raise its benchmark Federal Funds Rate next month, Fischer said the Fed could not wait for the case to be "overwhelming" before hiking rates above its current level of zero to 0.25%. Fischer also indicated that temporary headwinds that have caused recent volatility in global markets could recede quickly.
Currency traders await a panel discussion by several influential central bankers on Saturday, including Fischer at a conference in Jackson Hole for further indications on how global inflation could impact the Fed's decision on hiking short-term interest rates next month. The three-day summit at the mountaintop resort in Wyoming will conclude on Saturday with the most anticipated event of the conference – a symposium that will also feature Bank of England governor Mark Carney and Reserve Bank of India governor Raghuram Rajan.
Fischer, a noted Dove, could provide some clarity on the Fed's relatively ambiguous interpretation of its short-term projections on inflationary growth. Last week's release of the July minutes from the Federal Open Market Committee's last meeting painted a picture of a sharply divided Fed regarding their views on inflation. The FOMC said by some objectives the inflation data was "not progressing" toward its targeted goal, according to the minutes. Other members, however, said that inflation conditions for a rate hike would be met or could be "met shortly."