Forex News

EUR/USD Consolidates Gains Below 1.0900 Amid US Dollar Retreat

Published by
Nonhlanhla P Dube

EUR/USD, the currency pair representing the euro and the US dollar, is currently consolidating its gains below 1.0900 in early Europe. The pair has been advancing due to a broad retreat in the US Dollar alongside the US Treasury bond yields, as risk flows dominate ahead of Eurozone data and Fedspeak. Although the current decline in EUR/USD represents a downward correction, the main trend remains bullish, but in the short term, it is forming a downward channel. The price remains above key moving averages in the daily chart, and a recovery above 1.0925 would suggest that the correction is over.

Looking at the 4-hour chart, the price is currently below a bearish 20-period Simple Moving Average (SMA), currently at 1.0898, and has dropped under the 55-period, finding support at the 100-period. The bias favors the downside, but ahead of the Asian session, the pair has room to extend the rebound. Technical indicators show mixed signs and no conviction, with the RSI flattening around 40, and the MACD offering no clear clues. The next strong support on the downside emerges around 1.0790, which should limit the downside, and a break below would deteriorate the outlook for the bulls. On the upside, the immediate resistance is seen at 1.0880/90, followed by 1.0920, and if the Euro rises above 1.0920, it would start looking at the 1.0950 zone.

The EUR/USD dropped on Easter Monday, following Friday’s NFP, amid a stronger US Dollar across the board. The pair bottomed at 1.0830, the lowest level in a week, and then rebounded to 1.0850 amid an improvement in market sentiment. Market participants are focusing on Wednesday’s US Consumer Price Index numbers.

The Greenback opened the week stronger after the upbeat March jobs report, and following those numbers, the expectations of another rate hike from the Federal Reserve (Fed) rose. US yields climbed on Monday, with the 2-year reclaiming 4% and the 10-year above 3.40%. The European bond market will resume trading on Tuesday, and attention now turns to Wednesday’s US consumer inflation numbers. That same day, the Fed will release the minutes of its latest meeting.

It will be a quiet week in terms of economic data in Europe. On Tuesday, the Eurozone will report Retail Sales, which are expected to decline by 0.8% in March. Market participants still look for the European Central Bank (ECB) to raise interest rates at their next meeting. Overall, the current uptick in EUR/USD seems to be driven by the retreat in the US dollar and positive market sentiment, but market participants are keeping a close eye on upcoming economic data releases and central bank meetings.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Share
Published by
Nonhlanhla P Dube
Tags: EUR/USD

Recent Posts

Tesla Unveils Refreshed Model 3 in North America with Exciting Upgrades

Model 3 Refresh: Tesla introduces a restyled Model 3 in North America, featuring a rear…

January 11, 2024

SEC Twitter Account Compromised, False Bitcoin ETF Approval Post Triggers Market Volatility

Unidentified individual accessed SEC's Twitter through a third party. Lack of two-factor authentication heightened vulnerability.…

January 11, 2024

Global Currency Markets Navigate Economic Uncertainties: Yen Weakens, Dollar Awaits U.S. Inflation Data

Japanese yen falls against the dollar and euro due to persistently shrinking real wages for…

January 11, 2024

Oil Prices Unmoved as Unexpected U.S. Inventory Build Raises Concerns

Unexpected Inventory Build: U.S. crude inventories unexpectedly grew, sparking concerns about weakening fuel demand and…

January 11, 2024

YanGuFang International Group Appoints Interim Executives Amidst CEO and CFO Detainment

Leadership Shake-up: CEO and CFO of YanGuFang International Group detained by Shanghai Police, prompting interim…

January 11, 2024

Cryptocurrency Market Analysis: SHIB, SOL, and ETH Navigate Challenging Terrain

SHIB breaches 200-day EMA, signaling bearish sentiment. Historical data suggests strong buyer reactions and potential…

January 11, 2024