- A pause in US dollar recovery offers some support to the EUR bulls.
- But appears a dead cat bounce, as technical setup remains bearish.
- Focus on USD dynamics, Italian politics and Treasury yields ahead of US NFP.
The EUR/USD pair erases entire losses and looks to regain the 1.1350 barrier, helped by fresh US dollar selling across the board, despite the risk-off action seen on the European equity markets.
The US dollar could come under further pressure across its main competitors, as the inversion in the Treasury yield curve points to a weakening US economy, which could lead to a pause in the Fed tightening plans. However, lately, the greenback continues to find support from its safe-haven status, as the US-China trade war fears fuel led risk-aversion.
Meanwhile, the common currency also derives some support from upbeat Eurozone final services PMI report. Although, it remains to be seen if the spot can sustain the bounce, as the Euro looks vulnerable amid the ongoing Italian budget woes, with the latest report citing that the Italian Economy Minister Tria is considering resigning after the budget gets approved.
Calendar-wise, the immediate focus now remains on the Eurozone retail sales data due on the cards at 1000 GMT for fresh trading impetus. Also, the pair will continue to get influenced by the USD price-action amid a lack of significant macro news from the US docket.
EUR/USD Technical Levels
EUR/USD
Overview:
Today Last Price: 1.1338
Today Daily change: 0.0 pips
Today Daily change %: 0.00%
Today Daily Open: 1.1338
Trends:
Previous Daily SMA20: 1.1353
Previous Daily SMA50: 1.1434
Previous Daily SMA100: 1.1523
Previous Daily SMA200: 1.1755
Levels:
Previous Daily High: 1.1419
Previous Daily Low: 1.1318
Previous Weekly High: 1.1402
Previous Weekly Low: 1.1267
Previous Monthly High: 1.15
Previous Monthly Low: 1.1216
Previous Daily Fibonacci 38.2%: 1.1357
Previous Daily Fibonacci 61.8%: 1.138
Previous Daily Pivot Point S1: 1.1298
Previous Daily Pivot Point S2: 1.1258
Previous Daily Pivot Point S3: 1.1197
Previous Daily Pivot Point R1: 1.1398
Previous Daily Pivot Point R2: 1.1459
Previous Daily Pivot Point R3: 1.1499