Advertisement
Advertisement
trade360
BREAKING NEWS : Start Trading Today Join Now!
Advertisement XM

EUR/USD analysis: between a rock and a hard place

Written By Wojciech Matysiak | 2018-07-11 10:42:00 GMT

An escalation of the trade war has made a loud noise at the beginning of the day triggering a wave of risk aversion that sent equities nose-diving and benefited the greenback through the Asian and European sessions. During this last, however, a report indicating that ECB policymakers are split on when they might raise rates gave an impulse to the common currency. According to the report citing "several sources,"  the next rate hike could take place as soon as July next year, or as late as autumn. The dissent between them is what made speculators run back to buy the EUR, although with a cautious tone and always with an eye on the trade war.  

The report sent the EUR/USD pair up to 1.1757, its daily high, but the dollar resumed its advance after the release of US June PPI, which showed that inflation and factory levels rose by more than anticipated, with the core readings up 0.3% MoM and 2.8% YoY. The greenback edged higher against all of its major rivals, with the pair falling to fresh weekly lows in the 1.1680 price zone. Thursday will bring EU May Industrial Production figures and the latest ECB monetary policy meeting´s accounts,  closely watched on a search for clearer clues on the date of an upcoming rate hike. The US will offer June inflation figures, seen advancing further beyond 2.0% YoY.

The short-term picture for the pair is bearish according to the 4 hours chart, as it was unable to regain ground beyond a flat 20 SMA before plunging, while technical indicators maintain strong bearish slopes within negative levels. The pair, however, remains inside a familiar range and above the 100 and 200 SMA in the mentioned chart. Chances of further gains have now decreased, with additional declines expected on a break below 1.1660, the immediate support zone.

Support levels: 1.1660 1.1620 1.1580

Resistance levels: 1.1720 1.1755 1.1790

View Live Chart for the EUR/USD

Author

By Wojciech Matysiak
tickmill

Featured Forex Brokers

Broker Profile Open Account
XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    tickmill
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • tickmill
    markets
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • markets

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    XM
  • Offer: 30 USD No Deposit Bonus - 50% Deposit Bonus
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    eToro
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us
    Email: reviewbrokers.net@gmail.com
    Skype:fxvnpro