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  • EUR/USD Is Losing Bullish Momentum But Has Still Room To Advance
    Benzinga

    EUR/USD Is Losing Bullish Momentum But Has Still Room To Advance

    EUR/USD Current Price: 1.2152 Fears of increasing inflationary pressures hurt the market’s mood ahead of US CPI data. The German ZEW Survey showed that the Economic Sentiment improved in May. EUR/USD is losing bullish momentum but has still room to advance. The dollar extended its decline on Tuesday after a failed attempt to recover some ground. The EUR/USD pair peaked at 1.2181, holding nearby as the day came to an end. Inflation concerns temporarily boosted the greenback following a sharp increase in the Chinese Producer Price Index as a result of resurgent commodities prices. Risk aversion surged ahead of Wall Street’s opening, leading to sharp losses in equities, but was not enough to help the greenback. The shared currency found support in encouraging local data, as the German ZEW Survey showed that Economic Sentiment improved by more than anticipated in May. In the country, the index resulted at -40.1, while for the whole Union, it hit 84. Also, the German Wholesale Price Index was up 7.2% YoY in April, much better than the previous 4.4%. The US macroeconomic calendar only included the NFIB Business Optimism Index, which improved from 98.2 to 99.8 in April. This Wednesday, the focus will be on US inflation figures. The April Consumer Price Index is foreseen jumping from 2.6% to 3.6% YoY, while the core reading is expected at 2.3%. The forecasts are far above the US Federal Reserve target, and in normal times would mean monetary policy tightening. Fed’s officials have warned that such a jump in inflation not only is expected, but it likely be temporal. There won’t be a change in rates despite the number, although it could spur some wild market’s reactions. EUR/USD Short-Term Technical Outlook The EUR/USD pair trades in the 1.2150 price zone, lacking bullish strength but with the risk skewed to the upside. The 4-hour chart shows that technical indicators retreated sharply within positive levels, with the Momentum nearing its 100 line. At the same time, the pair remains above all of its moving averages, with the 20 SMA maintaining its bullish slope above the longer ones, currently around 1.2130. The pair could enter in a corrective decline on a break below 1.2110, while a steeper advance could be expected on a break above 1.2190. Support levels:1.2110 1.2070 1.2020 Resistance levels: 1.2190 1.2240 1.2285 View Live Chart for the EUR/USD Image Sourced from Pixabay See more from BenzingaClick here for options trades from BenzingaAUD/USD Forecast: Comfortable Above 0.7800AUD/USD Advanced Within Range, Upside Limited By 0.7820© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • AUD/USD Forecast: Comfortable Above 0.7800
    Benzinga

    AUD/USD Forecast: Comfortable Above 0.7800

    AUD/USD Current Price: 0.7845 Stocks plummeted, but demand for the greenback remained subdued. Australia will publish May Westpac Consumer Confidence on Wednesday. AUD/USD maintains its positive stance in the near-term, holds above critical 0.7820. The AUD/USD pair spent Tuesday in a tight intraday range, holding on to its latest gains above the 0.7800 thresholds. The pair trades around 0.7840, little changed from Monday’s close, as it is trapped between the broad greenback’s weakness and the poor performance of global indexes. Wall Street suffered sharp losses, led by the tech sector and fueled by rising commodity prices, which may end inflating producer prices and hence, resulting in higher-than-tolerable inflation levels. This Wednesday, Australia will publish May Westpac Consumer Confidence, previously at 6.2%. AUD/USD Short-Term Technical Outlook The AUD/USD pair has lost its bullish strength, but chances of a decline remain limited in the near-term. The 4-hour chart shows that the 20 SMA keeps advancing below the longer ones while providing intraday support. The RSI indicator consolidates around 59, while the Momentum indicator heads lower within positive levels, indicating decreasing buying interest instead of suggesting selling one. The immediate support level is 0.7820, but bears could have better chances, only below 0.7770. Support levels: 0.7820 0.7770 0.7720 Resistance levels: 0.7860 0.7900 0.7950 View Live Chart for the AUD/USD Image Sourced from Pixabay See more from BenzingaClick here for options trades from BenzingaAUD/USD Advanced Within Range, Upside Limited By 0.7820EUR/USD Struggling To Retain The 1.2000 Level, Bearish Once Below 1.1980© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Canadian dollar notches 6-year high as U.S. inflation jumps
    Reuters

    Canadian dollar notches 6-year high as U.S. inflation jumps

    The Canadian dollar strengthened against its U.S. counterpart and all the other G10 currencies on Wednesday as oil prices rose and investors bet that the Bank of Canada would be more sensitive to rising inflation than the Federal Reserve. "Higher inflation in the U.S. will spillover into Canada's economy and place upwards pressure on Canadian CPI," said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada.