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EURUSD analysis - Euro remains bearish below 1.1020

GKFX | Aug. 23, 2019
EURUSD analysis - Euro remains bearish below 1.1020

The sentiment around the European currency remains bearish although EURUSD has so far managed well to hold on above the 1.1060 area.

23 August 2019, GKFX – Spot is in a negative 3-day streak so far on Friday and navigating the lower bound of the weekly range near 1.1060.

The continuation of the buying pressure in the Greenback is seen limiting any bullish attempts in the pair, while investors are reluctant to build long positions in the currency in light of the most likely announcement of extra stimulus measures at the next ECB event in September.

Nothing scheduled today in Euroland in the data space, while all the attention will be on the speech by Fed’s J.Powell at the Jackson Hole Symposium, where the centre of the debate should be on the Fed’s plans regarding further easing and the outlook of the economy.

What to look for around EUR

EUR has finally succumbed to the downside pressure although another test of YTD lows in the proximity of 1.1020 remains elusive for the time being. Renewed buying interest surrounding the buck, expectations of ECB easing and Italian politics are seen driving the mood around the shared currency at the moment.

That said, sustained bullish attempts in the pair still look flimsy amidst ECB’s preparations for a fresh wave of monetary stimulus (most likely to be announced in September), including a potential reduction of interest rates, the re-start of the QE programme and a probable tiered deposit rate system.

This scenario has been confirmed as of late following poor results from the euro-docket, adding to the unremitting deterioration of the economic outlook in the region.

EURUSD technical analysis

At the moment, the pair is retreating 0.11% at 1.1066 and faces the next support at 1.1060 (low Aug.23) seconded by 1.1026 (2019 low Aug.1) and finally 1.0839 (monthly low May 11 2017). On the other hand, a breakout of 1.1132 (21-day SMA) would target 1.1213 (55-day SMA) en route to 1.1282 (high Jul.19).

Disclaimer

This article was provided by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.