News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
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
GBP/USD
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
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/U40lgEA8K7
  • New Zealand Dollar Vulnerable as NZD/USD Eyes Falling Wedge - #NZDUSD chart https://t.co/9AGaZsMFmF
  • (Gold Briefing) Gold Price Outlook Turns to UofM Sentiment as US Dollar, Treasury Yields Rally #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/09/17/Gold-Price-Outlook-Turns-to-UofM-Sentiment-as-US-Dollar-Treasury-Yields-Rally.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/p7VdFesUb1
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/XPtqedJjyk
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/m6XH4n43UQ
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/yy64N01p2b
  • PBOC injects net 90 billion Yuan in open market operations - Yuan reference rate set at 6.4526 per USD - BBG
  • Australia to trial home quarantine for arrivals who are vaccinated - BBG
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/moWS7rqAQG
  • RT @FxWestwater: New Zealand Dollar Outlook: $NZDUSD Drops on US Dollar Bids, Wall Street Losses Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/16/New-Zealand-Dollar-Outlook-NZDUSD-Drops-on-US-Dollar-Bids-Wall-Street-Losses.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.c…
Euro Latest: EUR/USD Breakdown, EUR/JPY Capped - EU GDP Shrugged Off

Euro Latest: EUR/USD Breakdown, EUR/JPY Capped - EU GDP Shrugged Off

Justin McQueen, Strategist

EUR/USD, EUR/JPY Price Analysis & News

  • EUR/USD at Risk of a Further Deterioration
  • EUR/JPY Struggling at Topside Resistance

Eurozone GDP Recap

EU GDP Q4 Y/Y: -5.1% vs Exp. -5.4% (Prior -4.3%) - Q/Q: -0.7% vs Exp. -1% (Prior 12.5%)

Eurozone GDP printed slightly better than expectations, which is of little surprise given the slightly better than expected readings for both France and Germany. In turn, the reaction in the Euro had been muted. Keep in mind as well that this data is somewhat outdated, particularly with the majority of the Eurozone under lockdown measures at present and thus downside risks are likely to persist throughout Q1. However, the GDP data does highlight the diminishing impact of restrictive measures on economic activity.

EUR/USD at Risk of a Further Deterioration

EUR/USD:The Euro got off to a sluggish start to the week with the currency making a firm break below its 50DMA, which in turn is likely to reinforce the short-term bearish outlook. Alongside this, the Euro has largely felt the brunt of a USD that is in recovery mode, which yesterday broke above its downtrend and thus the 91.00 level is in focus for the greenback. Should the USD print a close above the 91.00, there may be more room for further upside in the dollar, particular with other pair posting key breaks, such as USD/JPY. That said, the chaotic rollout of the vaccine program has not helped matters for the Euro, which has seen the currency underperform, particularly against those currencies that have been underpinned by a successful vaccine rollout (namely GBP). As such, EUR/USD is testing support at 1.2065 (38.2% retracement of Nov-Jan rise), which had held firm throughout January. That said, a close below opens the door to 1.2000-11 where Euro longs are likely to liquidate below this area.

EUR/USD Chart: Daily Time Frame

Euro Latest: EUR/USD Breakdown, EUR/JPY Capped - EU GDP Shrugged Off

Source: Refinitiv

EUR/JPY Struggling at Topside Resistance

EUR/JPY: Trend signals are beginning to ease as EUR/JPY stumbles at 127.00 yet again. For now, the uptrend remains intact, however, that view will be challenged on a break below 126.14, which raises the risk of a test of trendline support. That said, I will be placing a close eye on Italian politics for the near-term EUR/JPY outlook. Overnight, talks had been reportedly blocked over policy issues, while certain parties have called for a major cabinet shake-up. However, while the worst-case scenario of snap-elections is a very low probability, heightened political risk premium is likely to keep EUR/JPY upside capped.

EUR/JPY Chart: Daily Time Frame

Euro Latest: EUR/USD Breakdown, EUR/JPY Capped - EU GDP Shrugged Off

Source: Refinitiv

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

DISCLOSURES