EUR/USD loses upside momentum after climbing to 1.0030.Another test of the 0.9900 region appears well on the cards.EUR/USD quickly fades the earlier uptick to the area north of the parity level, or new 3-day highs.
The lack of conviction of the earlier bullish attempt leaves the door open to the resumption of the downtrend. Against that, another visit to cycle lows around 0.9900 remains in store in the not-so-distant future. A drop below the 2022 low at 0.9899 (August 23) could sponsor a deeper pullback to the December 2002 low at 0.9859.
In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0832.
EUR/USD rebounds toward parity amid renewed dollar weakness
EUR/USD has regained its traction during the American trading hours and advanced toward parity. After Philadelphia Fed President Patrick Harker said that a 50 bps rate hike in September would still be a “substantial move,” the dollar started to weaken against its rivals.
EUR/USD News
GBP/USD gains traction, closes in on 1.1850
GBP/USD has reversed its direction after having dropped below 1.1800 in the early American session and started to rise toward 1.1850. The renewed dollar weakness and the improving market mood on dovish Fed commentary seem to be fueling the pair’s upside.
GBP/USD News
Gold clings to modest daily gains, stays below $1,760
Gold has managed to stage a rebound and turned positive on the day above $1,750. The dollar stays on the back foot in the American session but the benchmark 10-year US Treasury bond yield holds steady near 3.1%, limiting XAU/USD’s upside for the time being.
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