EUR/USD trapped below resistance — Can buyers force a breakout?
The Euro failed to settle above 1.1650 against the US Dollar. EUR/USD corrected some gains and traded below 1.1620 to move into a consolidation zone.
EUR/USD has struggled to build on the rebound from the July low, with recent price action reflecting a lack of conviction on either side. This week's ECB rate hike and hawkish guidance did little to resolve the stalemate, leaving the Euro searching for a fresh directional catalyst.
Stronger core inflation favours MUFG's bearish Euro scenario, with the bank now expecting a September Fed hike and EUR/USD closing below 1.16. The Euro to Dollar (EUR/USD) exchange rate closed Friday near 1.1599, down 0.10% on the day, as stronger US core inflation reinforced expectations of a Federal Reserve rate increase.
EUR/USD Weekly Forecast: To hike or not to hike? Kevin Warsh between a rock and a hard place
The Euro hit a correction towards the target and support of 1.1570, as the market still holds above this support since last week. As we see from the chart and as long as the market holds above this support, a rebound towards 1.1710 is likely.
Euro steadies against US Dollar after volatile reaction to US CPI
The EUR/USD edged lower this morning, down for the second day, ahead of the release of US CPI. The pair has been consolidating in a tight range, and yesterday's hawkish rate hike from the ECB failed to deliver the breakout many traders were hoping to get.
EURUSD slides lower The dollar (EURUSD) progressed as the European Central Bank raised its key interest rate. The pair is still probing for support after hitting a weekly low below 1.1600.
Euro: Downside risks while 1.1585 holds against US Dollar – UOB
Fed hike bets rise as traders await U.S. CPI, with DXY testing 99.16 resistance while EUR/USD and GBP/USD remain under pressure.
Morning briefing: EUR/USD sees near-term weakness against the US Dollar