Forex Marketz Daily Forex News – Fully Markets Update
The euro currency fell for the third week in a row against the U.S. dollar. The EUR/USD currency exchange rate is near a yearly low price point at 1.1663 but still above the key 1.17 level.
The benchmark EUR/USD is also trading below a bearish looking fifty (50) day simple moving average which lines up near 1.19 as well as the one hundred and two hundred (100, 200) day simple moving averages. The 100 day simple moving average has crossed above the 200 day simple moving average.
Last week, the greenback enjoyed safe haven inflows as well as a boost from a hawkish sounding Federal Reserve monetary policy statement and a dot plot signaling a possible rate hike in 2022. Evergrande, China’s largest property manager is at risk of default and Beijing is reluctant to bail them out.
This could disrupt the global financial markets. With sour sentiment, safe haven currencies like the greenback could get a boost over sentiment linked currencies like the euro.
On the economic calendar, for Monday, the United States will publish monthly core and headline durable goods orders. The Dallas Federal Reserve will release their monthly manufacturing index. European Central Bank President Christine Lagarde is giving remarks.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD daily MT 4 chart, the momentum indicator has recovered from its low but is sloping lower.
The 14 day relative strength index (RSI) is also sloping lower and is near 40. Also, there is near term support at 1.17 with a key support level at 1.16 in play.
The euro currency looks bearish as the EUR/USD Forex market is below all three of its daily moving averages. A daily close below the yearly low price point at 1.1663 will open the door to challenge 1.16. The next downside barrier lines up at 1.1520.
