EUR/USD nears 1.19 as dollar remains under pressure

EUR/USD nears 1.19 as dollar remains under pressure

EURUSD continues to grind higher amid broad-based losses in the US dollar. The latest bout of dollar weakness is likely associated with the US-specific factors rather than the decline in safe-haven flows. As such, the dollar could extend the decline in the short-term, pushing EURUSD above the 26-month high of 1.1916. 

The euro has been a head-turner of late, taking on the bears at monthly trendline resistance while the USD weakens against most of its peers. The risks are skewed in the bear's favour from both a technical and fundamental standpoint as market sentiment remains fragile due to EU travel restrictions and relations between the US and China.

The pair has reached a charting area that could well call for a phase of consolidation and a retest of downside structure, as illustrated below. 

Fundamental Overview

The latest bout of dollar weakness is likely associated with the US-specific factors rather than the decline in safe-haven flows, according to Reuters analysts. 

As such, the dollar could extend the decline in the short-term, pushing EURUSD above the recently hit 26-month high of 1.1916. 

Additional bearish pressure may emanate from the lingering US-China tensions and election uncertainty. President Trump is now willing to give the Postal Service the money it needs to facilitate mail-in ballots on fears that mail-in voting will lead to fraud, according to CNN. The data docket is thin on Tuesday, which means the pair is at the mercy of the broader market sentiment. 

 

Source : FxStreet

Incoming search terms:

  • euro dollar
  • euro dollar news
  • eur usd News
  • gbpusd
  • gbpusd
  • forex news
  • forecast eurusd

Tags: euro dollar euro dollar news eur usd News gbpusd gbpusd forex news forecast eurusd

Leave a comment