|Day's Range||1.173 - 1.18|
|52 Week Range||1.1302 - 1.2558|
The Euro broke through a downtrend line during the week, testing the vital 1.18 level above. That’s an area that has been the top of the overall consolidation, so it makes sense that it caused a little bit of resistance. I believe at this point it’s likely that participants are taking a bit of a breather more than anything else.
Investing.com - The dollar rose against its rivals on Friday, as investors reined in appetite for emerging-market currencies, while the pound racked up losses as the UK and EU reached an "impasse," on a post-Brexit deal.
Investors consider the health of Italy’s finances a major threat to the euro, so all eyes are on next week’s Italian budget proposal.
The Australian dollar was lower, with AUD/USD down 0.16% to 0.7280. Meanwhile NZD/USD jumped 1.04% to 0.6679 after Moody's reaffirmed the country’s AAA rating.
The U.S. dollar strengthens in Friday trading but still looks at its worst weekly performance in a month, while the British pound is pushed sharply lower after Prime Minister Theresa May spoke of the possibility of a “no-deal” Brexit.
Europe stocks finished the week with its best performance since late March on Friday as financials and major oil companies do the heavy lifting.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to yesterday’s close at 1.1777 and the July 9 top at 1.1791.
The EUR/USD closed well above 1.17 yesterday, signaling a continuation of the rally from August lows and an above-forecast Eurozone preliminary PMI releases could accentuate the bullish case.
The Euro broke out during the trading session on Wednesday, slicing through a “neckline” of a very complex inverse head and shoulders that I was talking about yesterday. I think at this point we will more than likely go looking towards the next round figure where I expect a fight.
Inflation numbers out of Japan this morning were a reminder of how far off the BoJ is from making a move, focus shifting to the EU and the Oval Office.
Investing.com - The dollar fell to a nearly four-month low against its rivals on Thursday, as investors bet on an ongoing rebound in emerging-market currencies amid improved sentiment in developing economies.
The U.S. dollar weakens on Thursday, partly due to a buoyant British pound and New Zealand dollar, which were both trading higher on the back of better-than-expected economic data.
EUROPE MARKETS Europe’s main stock gauge ended higher on Thursday, logging a fifth day of gains for the index, as banks and mining stocks once again did the heavy lifting. What are markets doing? The Stoxx Europe 600 (XX:SXXP) rose 0.
Based on the early price action, and the old saying that old tops tend to become new bottoms, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the July 23 top at 1.1751.
The Euro initially rallied during the day on Wednesday but is facing stiff resistance at the neckline of an inverse head and shoulders pattern that is formed on the daily chart. The market is expected to continue noisy and given the trade wars, USD will experience pressure and “buy on dips” will be the right strategy to continue in this market.
A combination of increased risk appetite and a pullback in the treasury yields could yield much-needed break above 1.17.
You can make a real argument for the Euro testing the neckline of an inverse head and shoulders near the 1.17 handle, and it certainly looks as if that area continues to give us a lot of resistance. However, I think it’s obvious that the buyers certainly are becoming a bit more aggressive. I also see a lot of noise above, so this is going to be a tough couple of weeks.
Impressive 2nd GDP numbers drive the Kiwi, with Brexit and retail sales numbers putting the Pound in the spotlight.
Investing.com - The dollar fell against its rivals on Wednesday, shrugging off mostly upbeat U.S. economic data as emerging market currencies made a stand against the greenback on improved sentiment.
The U.S. dollar trades slightly weaker versus many of its rivals on Wednesday, as investors focus on turmoil surrounding the British pound, as well as China’s reiteration that it wouldn’t use its yuan as a trade war tool.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.17% to 94.06 as of 11:45 AM ET (15:45 GMT). The new tariffs are in response to U.S. tariffs on Monday of 10% on $200 billion in Chinese goods, which will go up to 25% at the end of the year. Meanwhile, trade developments with the U.S. and Canada continued, as Canadian Prime Minister Justin Trudeau said he was going to need see “movement” before a deal could be reached.
Europe’s main stock gauge ends Wednesday’s session higher, booking its fourth straight win thanks to gains in the materials and chemicals sectors.