EUR/USD capped below 1.1100

FXStreet (Mumbai) - EUR/USD keeps its side-trend intact in the Asian session, extending the bearish tone for the fourth straight session on Monday, as the greenback continues to surf higher on the wave of upbeat US macro data released on Friday which further reinforced Sept rate hike expectations.

EUR/USD rejected at 1.1101

The EUR/USD pair trades -0.20% lower at fresh session lows of 1.1087, on its way to test 1.1080 – key levels. The main currency pair navigates in a slim range, extending its corrective mode after it reached fresh monthly highs at 1.1213 on Wednesday last week. Overall, the pair strengthened 1.5 big figures over the past week.

The EUR/USD pair remains largely subdued as the USD bulls continue to dominate during the Asian session supported by Friday’s PPI and industrial production data which surprised markets on the upside.

Moreover, markets favour the US currency ahead of the crucial US CPI data due for release later this week which may provide further insights into the Fed rate hike timing.

Meanwhile, Euro zone trade data will keep traders slightly busy in a rather data-light European session ahead.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1123 (Aug 16 High) levels, above which gains could be extended to 1.1198 (July 13 High) levels. On the flip side, support is seen at 1.1079 (Aug 13 Low) below which it could extend losses to 1.1023 (Aug 12 Low).

USD/CNY opens at 6.3941 versus 6.3918 Friday

The USD/CNY pair opened at 6.3941 following today’s PBOC yuan fix, 0.58% higher from Friday’s close at 6.3918.
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Broad based USD strength extends in Asia, Greece back in focus

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