EUR/USD: too much too soon? Fading the upside in early Asia

Currently, EUR/USD is trading at 1.1837, down -0.03% on the day, having posted a daily high at 1.1845 and low at 1.1837.

EUR/USD is finding some pressure in the early hours of Asian trade having made a fresh YTD high o/n on month-end fixing that sent the greenback off a cliff. The euro is in favour with expectations of the ECB turning hawkish and positive data that is arriving in stark contrast to that of the US economic performance run of late. However, the nonfarm payrolls at the end of the week are on trader's minds and this might be a bid too far ahead of that key event.

Forex today: dollar and rates down, euro and sterling on a tear

"Pan Eurozone CPI for July reflected national upticks and core printed 1.2% (1.3% headline) and Eurozone unemployment continued its slow edge lower (9.1%) but both were already in the price despite being 0.1% from consensus levels," explained analysts at Westpac who also noted today's key event risk for the euro in the European session as follows, "Euro Area Q2 GDP advance is expected to follow up a strong Q1 rising 0.6% which brings the annual pace to 2.1%. Growth has firmed and broadened across the continent with country to country dispersion quite low."

EUR/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that from a technical point of view, the EUR/USD pair has reached the top of the daily ascendant channel.  "In the 4 hours chart, the price has met buying interest on a slide down to a bullish 20 SMA, whilst the Momentum indicator maintains its strong upward slope near overbought levels, whilst the RSI indicator hovers around 70, all of which favors the upside," Bednarik noted, adding, "the immediate resistance is now 1.1845, January 14th 2015 high, followed by the 1.1870 price zone, where the pair presents multiple daily highs and lows from earlier that month. Further gains, particularly if US upcoming data remain soft can see the rally extending up to 1.2101, the high for the mentioned month."