EUR/USD PRICE OUTLOOK: EURO TO US DOLLAR BUILDS TRADING RANGE – LEVELS TO WATCHEUR/USD value motion has drifted decrease and now
EUR/USD PRICE OUTLOOK: EURO TO US DOLLAR BUILDS TRADING RANGE – LEVELS TO WATCH
- EUR/USD value motion has drifted decrease and now gravitates beneath its 8-day shifting common
- Euro energy wanes because the bloc forex offers again latest good points towards its US Greenback peer
- EUR/USD may develop a buying and selling vary roughly between the 1.1700-1.1900 value ranges
EUR/USD value motion has fluctuated inside a broad 200-pip buying and selling vary after the main forex pair topped out on the 1.19-handle. The Euro nonetheless trades significantly larger relative to its US Greenback counterpart, at the moment up about 10% since EUR/USD based mostly across the 1.08-price degree three months in the past, however the bloc forex has began to give up a few of these good points.
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EUR/USD PRICE CHART: DAILY TIME FRAME (01 MAY TO 11 AUGUST 2020)
As Euro energy begins to ebb, which is indicated by the falling relative energy index, plainly EUR/USD bulls are dropping conviction. This follows a possible double prime sample on the 1.1900-mark. Spot EUR/USD value motion now hovers beneath its downward-sloping 8-day shifting common.
| Change in | Longs | Shorts | OI |
| Each day | 6% | -2% | 1% |
| Weekly | 2% | 0% | 1% |
This technical barrier may counsel a bearish bias could also be growing because the short-term pattern begins to level decrease. That stated, interim technical assist seems to align with month-to-date lows residing roughly across the 1.1700-handle earlier than the medium-term 34-day shifting common comes into focus as a possible draw back goal for EUR/USD bears.
EUR/USD PRICE CHART: 4-HOUR TIME FRAME (29 APRIL TO 11 AUGUST 2020)
Chart created by @RichDvorakFX with TradingView
One other headwind probably threatening the latest EUR/USD rally is the newest collapse in sovereign yield spreads between 10-year US Treasuries and German Bunds. This widening rate of interest differential may present a lift to the US Greenback relative to its lower-yielding Euro peer, notably if the transfer larger in Treasury yields can achieve traction.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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