We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • How can you be a part-time trade? Get your tips on workflow and strategy here with@WVenketas: https://t.co/b8ywNOOgx9 #tradingstyle https://t.co/wk8PAE4uNv
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/4:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/29mp0J5bys
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.03% Gold: -0.17% Silver: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5vlrajdMNh
  • Over the past 30 days, #NZD, #SEK and the #AUD have been the best performing G10 currencies vs. USD with +1.87%, 1.70% and 1.03% total returns.
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.18% 🇪🇺EUR: 0.07% 🇨🇦CAD: 0.03% 🇯🇵JPY: -0.03% 🇳🇿NZD: -0.05% 🇦🇺AUD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qf00nTj6Hd
  • LIVE NOW: Join Senior Strategist @IlyaSpivak as he discusses the outlook for the financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/889679267?CHID=9&QPID=917720
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.80%, while traders in France 40 are at opposite extremes with 87.38%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ajip0jMeD9
  • LIVE IN 30 MIN: Join Senior Strategist @IlyaSpivak as he discusses the outlook for the financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/889679267?CHID=9&QPID=917720
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/3:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/EhPTrzvjdH
  • Since late July, the economic news flow from Sweden has been under-performing relative to economists’ expectations however there has been some improvement since early October. -Citi #SEK
EURUSD May Fall US Consumer Confidence, German GDP Data

EURUSD May Fall US Consumer Confidence, German GDP Data

2019-08-27 06:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

US Dollar, Euro, EURUSD, US Consumer Confidence – TALKING POINTS

  • US Dollar may rise if economic data supports slowing growth narrative
  • Demand for liquidity could boost the Greenback and pressure EURUSD
  • German GDP, US consumer confidence data will be critical to monitor

Learn how to use political-risk analysis in your trading strategy!

The Greenback may rise against the Euro if US consumer confidence data undermines optimism about future demand. Consumption accounts for 70 percent of the economy, so an erosion in the underlying inclination to spend more could negatively impact inflation and growth prospects. In Germany, if finalized GDP data misses estimates, it could pressure the Euro as the continent continues to show increasing economic weakness.

As Europe’s proverbial “steam engine”, Germany is a power node of economic activity within a regional hub that constitutes one of three major pillars in the global economy. Weakening demand there is also already rippling out into the continent and negatively impacting member states and perimeter economies – like Sweden and Norway. A poor GDP reading could pressure the Euro and send USD higher if risk aversion is induced.

EURUSD Technical Analysis

The pair is currently sitting inside an 18-month descending resistance channel (red zone) as the pair continue to seesaw between treating the ceiling as resistance and support. In the upcoming session, EURUSD may test the lower lip of support. However, we may not see major price moves until the publication of US Q2 GDP and personal consumption data.

Having said that, given the fundamental outlook and growing strength of the US Dollar, the path of least resistance for the pair suggests it favors a downside bias. Be sure to follow me on Twitter @ZabelinDimitri for more technical and fundamental analysis in European assets.

CHART OF THE DAY: Don’t be fooled by the short-term chart: EURUSD downtrend remains strong despite marginal uptick

Chart showing EURUSD

EURUSD chart created using TradingView

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.