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EUR/USD: Hovering Near Weekly Lows

US Gross Domestic Product at 2.0% according to the second estimate. German inflation missed expectations, ahead of EU CPI release. EUR/USD hovering near 1.1051, immediate support ahead of yearly low.
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FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market and was founded in 2000. The website offers a wide range of tools and resources: 24/5 currency news, real-time economic calendar, advanced rates and charts, educational webinars, analysis reports, forecasts, Learning Center, newsletters, industry services, FX customizable studies… As its distinctive trademark, the portal has always been proud of its unyielding compromise to provide neutral and unbiased information and to enable its users to take better and more confident decisions. FXStreet has managed to gain the collaboration of the entire Forex industry, from individual professionals and small companies right up to Forex Brokers and Investment Banks. FXStreet covers the FX Market 24/5: an expert team of journalists, traders and economists picture what the market is doing and what is happening as it happens. Besides the main website in English, the portal is available in 16 other languages (English, Japanese, Simplified Chinese, Traditional Chinese, Spanish, Russian, Arabic, Turkish, Indonesian, Portuguese, German, French, Italian, Hungarian and Vietnamese, Korean and Catalan). FXStreet was short listed as “Best e-FX initiative of the year (vendor)” for the FX Week e-FX Awards 2010.

  • US Gross Domestic Product at 2.0% according to the second estimate.
  • German inflation missed expectations, ahead of EU CPI release.
  • EUR/USD hovering near 1.1051, immediate support ahead of yearly low.

The shared currency has maintained the sour tone throughout the first half of the day, falling against its American rival to a fresh weekly low of 1.1069. The market’s sentiment improved following comments from Chinese authorities, which said that they have no intentions to escalate the trade war and that they are preparing to resume talks next September. The EUR, however, remained under pressure, later weighed by worse than anticipated German inflation, down by 0.1% monthly basis and up by 1.0% when compared to a year earlier.

The US released the second estimate of Q2 GDP, which matched the market’s expectations with 2.0%. Initial Jobless Claims for the week ended August 23 also came in as expected, at 215,000, while July Wholesales Inventories were up 0.2%. Finally, the Goods Trade Balance posted a deficit of $72.34 billion in July. The unimpressive releases had no impact on the currency pair.

EUR/USD short-term technical outlook

The EUR/USD pair remains depressed near its daily low, bearish according to technical readings in the 4 hours chart, as it is developing below all of its moving averages, and with the 20 SMA accelerating its decline, now converging with a critical Fibonacci level at around 1.1095. Technical indicators remain within negative levels, although with limited directional strength. The decline could continue on a break below 1.1051, the low set last week, with the next relevant support at 1.1026, this year low.

Support levels: 1.1050 1.1025 1.0980

Resistance levels: 1.1095 1.1125 1.1160

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Equities Contributor: FXStreet

Source: Equities News