EUR/USD adds to the weekly leg lower around 1.0500.
Extra losses appear likely in the short-term horizon.EUR/USD adds to the recent weakness and revisits the 1.0480 region on Wednesday, where some initial support turned up.
The inability to leave behind the 4-month line near 1.0650 should keep the downside pressure unchanged around the pair. Against that, extra losses are predicted to remain in the pipeline, although another visit to the June low at 1.0358 seems out of favour for the time being.
In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.1119.
EUR/USD daily chart
EUR/USD stays under pressure below 1.0500
EUR/USD is having a difficult time staging a rebound after having dropped below 1.0500 earlier in the day. FOMC Chairman Powell’s relatively optimistic comments on the economic outlook provided a boost to the dollar in the second half of the day, weighing on the pair.
GBP/USD rebounds modestly, trades near mid-1.2100s
GBP/USD fell to its lowest level in nearly two weeks near 1.2100 but managed to stage a rebound. With the dollar preserving its strength on the back of FOMC Chairman Powell’s hawkish comments, however, the pair stays in negative territory near 1.2150.
Gold steadies near $1,820 following earlier drop
Gold is struggling to make a decisive move in either direction and seems to have steadied near $1,820, where it closed on Tuesday. Despite the broad-based dollar strength, XAU/USD holds its ground amid a more-than-2% decline seen in the 10-year US yield.
Fresh lows for crypto markets in sight as recovery gains come undone
Bitcoin price faced an intense sell-off as it approached the recent weekly open, indicating that investors are looking to book profits. This downswing has caused Ethereum, Ripple and other altcoins to take a dip as well.