EUR/USD approaches 1.1966, appears to be on the up

Justin Freeman

The euro has been doing well in the foreign exchange markets in recent months – especially since the US dollar saw its jitters continue.

However, traders and analysts have now turned their attention back to it following the arrival of the currency at the 1.1966 point on the price charts.

This is a significant position for the currency given that it represents its high point from last month.

It later went on to trade in a more limited range.

However, the poor performance of the dollar in recent days thanks to a recent Federal Reserve announcement has meant that this position is back in play for the euro.

Some analysts perceive the Relative Strength Index (RSI) of the pair to be showing a potential uptrend overall, even though value levels have fluctuated due to the Fed’s announcement.

There is a belief that the RSI is likely to soar well over the 70 level in the coming days, and comes alongside a surge in the pair’s value.

There are some threats on the horizon for the pair’s value, however.

The rise in the value of the RSI is not in the bag, and it recently saw a drop to under the crucial 70 level – leading to a sell-off.

Aside from price chart analysis, it is worth looking at the economic calendar to see what other market-moving events could be on the horizon in the coming days.

Wednesday, for example, will see a producer price index for the month of July revealed at 9am GMT.

Year on year, this is due to show a change from -3.7% to -3.4%.

On a month-on-month basis, a decline from 0.7% to 0.5% is expected to be seen in this metric.

Looking ahead to Thursday, meanwhile, a range of purchasing managers’ indices from many major European countries is due to be published.

Spanish PMI levels for the services sector in August will be out at 7:15am GMT.

This is due to show a change from 51.9 to 48.

The Italian equivalent is due to be out half an hour later, and it is set to show a shift from 51.6 to 49.2.

After that, there will be a release from France, Germany and then a Europe-wide one.

At 9am GMT, there will be a retail sales release for July covering the whole of the continent.

This is set to show a year-on-year change from 1.3%, where it rested previously, to 3.5%.

A month-on-month release for the same period will be out in the same slot, and is due to go from 5.7% to 1.4%.

Later on Thursday, there will be some central bank action.

Isabel Schnabel, who sits on the executive board of the European Central Bank, is due to speak at 3pm GMT, and her statement will no doubt be watched closely by traders of the euro.

Justin Freeman

Latest news

Contagion Warning From Crypto Markets Could Be A Buy Signal
One of the reasons the 2020 market crash was so severe and sudden was that overextended investors sold out of positions to liquidate funds, which drove prices down further, and created a need for further selling. Read more
Market Guru Cathie Wood is Buying These Stocks Right Now
With the Nasdaq 100 index currently trading 28% lower than its January highs, the Q1 correction has transformed into a multi-month rout. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker

    Forex Fraud Certified Brokers

    Pepperstone Logo
    BlackBull Markets Logo
    skilling logo
    AvaTrade logo
    FXTM Logo
    Exness Small Logo
    IQ Option Logo
    HYCM Logo
    OctaFX Logo
    City Index Logo
    LegacyFX Small Logo
    IC Markets Logo Logo
    BDSwiss Logo
    ATFX Logo
    XM Logo
    Plus500 Small Logo