EUR / USD cuts gains and returns to 1.1830

- Advertisement -
  • EUR / USD now sandwiched gains with losses close to 1.1830
  • The dollar regains some traction and bounces away from lows.
  • US producer prices surprised to the upside in August.

The single currency cut initial gains and is now dragging the EUR/USD to the region of 1.1830 on Friday.

EUR / USD: Bearish below 1.1880 / 85

- Advertisement -

EUR / USD is looking to stabilize just above weekly lows at the 1.1800 zone and retrace part of the previous advance to 1.1850, or 3-day highs. Looking at the daily chart, the short-term resistance line around 1.1880 is expected to continue to limit bullish attempts on the pair.

The slight recovery in the dollar comes in response to the slight rebound in US 10-year bond yields to levels above 1.32%.

- Advertisement -

Additionally, FOMC aggressive line member L. Mester (Cleveland Fed) suggested that inflation would remain high this year, only to lower in 2022.

On the euro agenda, Germany’s final inflation figures showed that the headline CPI remained flat on a monthly basis in August and increased by 3.9% over the previous year. Inflation followed by the broader HICP increased 0.1% month-on-month and 3.4% year-on-year. Later in the session, the ECB’s Lagarde is due to speak and the EurGroup meeting is expected to begin.

In the US, producer prices increased 0.7% monthly over the past month and 8.3% over the previous year. Core prices were up 0.6% month-on-month and 6.7% year-on-year. Later in the session, wholesale inventory results will close the weekly economic agenda.

Technical levels

So far, the pair is gaining 0.08% at 1.1833 and is facing the next bullish barrier at 1.1909 (September 3 monthly high) followed by 1.1941 (100-day SMA) and finally 1.2000 (psychological level). On the other hand, a break below 1.1802 (Sept. 8 weekly low) would target 1.1788 (20-day SMA) en route to 1.1663 (Aug. 20, 2021 low).

Source Link

- Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles