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EUR/USD climbs above 1.1850 on cross-driven strength

EUR/USD climbs above 1.1850 on cross-driven strength

  • EUR/USD rises 0.30%, tracking bigger gains in EUR/JPY. 
  • The anti-risk yen is being offered alongside gains in US yields. 
  • The focus will be on the US core PCE data, due at 12:30 GMT. 

EUR/USD is trading in the green in the 1.1860 neighborhood at press time despite the uptick in the US treasury yields. 

US yields rise

The US 10-year yield is trading at 2-½-month highs near 0.78% at press time, having rallied by over 10 basis points from 0.65% to 0.75% on Thursday. Even so, the EUR/USD pair has gained 0.30%. 

The pair looks to be benefitting from the 0.57% rise in EUR/JPY cross. The anti-risk yen is being offered across the board amid the rise in US yields and risk-on action in the global equities. 

 

Bias remains neutral

While EUR/USD has gained nearly 0.3%, it is still trapped within the range of Thursday’s Doji candle. As such, the immediate bias remains neutral. 

A close above the Doji candle’s high of 1.1902 is needed to put the bulls back into the driver’s seat. Alternatively, acceptance under 1.1762 – the low of Thursday’s Doji candle – would confirm a short-term bullish-to-bearish trend change. 

The breakout may happen later today if the US core personal consumption expenditure for July – the Fed’s preferred measure of inflation – prints below the forecasted rise of 1.2% year-on-year. That would validate Federal Reserve’s latest decision to adopt a more relaxed approach to control inflation and could yield broad-based losses in the greenback. During the European trading hours, the EUR/USD may take cues from the Euroone business and investor sentiment indices, scheduled for release at 09:00 GMT. 

Technical levels

EUR/USD

OVERVIEW
Today last price 1.1859
Today Daily Change 0.0037
Today Daily Change % 0.31
Today daily open 1.1822
 
TRENDS
Daily SMA20 1.1818
Daily SMA50 1.1567
Daily SMA100 1.1282
Daily SMA200 1.116
 
LEVELS
Previous Daily High 1.1902
Previous Daily Low 1.1762
Previous Weekly High 1.1966
Previous Weekly Low 1.1754
Previous Monthly High 1.1909
Previous Monthly Low 1.1185
Daily Fibonacci 38.2% 1.1816
Daily Fibonacci 61.8% 1.1849
Daily Pivot Point S1 1.1756
Daily Pivot Point S2 1.1689
Daily Pivot Point S3 1.1616
Daily Pivot Point R1 1.1895
Daily Pivot Point R2 1.1968
Daily Pivot Point R3 1.2035

 

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