Euro struggles against Dollar; Gold wobbles

18 June, 2020

The Euro remains trapped in a fierce battle against an unyielding Dollar with prices trading marginally below 1.1250 as of writing.

Over the past few days, the EURUSD has displayed explosive levels of volatility thanks to conflicting market themes and sharp swings in investor sentiment. With the Dollar finding renewed support from new coronavirus outbreaks in Beijing and rising geopolitical tensions, the Euro is poised to extend losses against the Greenback.

On the hourly timeframe, the head and shoulders technical pattern is bearish and suggests a move towards 1.1220 and 1.1180, respectively. Technical traders may wait for a solid hourly close below the 1.1220 intraday support level before riding the decline lower.

Zooming out to the H4 chart, bears seem to be in control with prices cutting below 1.1250. Technical lagging indicators like the 20 Simple Moving Average and MACD point to the downside. Sustained weakness under 1.1250 on the H4 chart could trigger a decline back towards 1.1200 which remains a significant support level.

Looking at things in the longer term, the Euro remains in a losing battle against the Dollar on the daily charts. Should the last line of defence at 1.1200 give way, expect prices to tumble towards 1.1150 and 1.1090, respectively.

Commodity spotlight – Gold


One would have expected Gold shine amid the market caution and rising geopolitical tensions.

However, the opposite was witnessed on Wednesday as prices shed 0.6% despite the rising levels of risk aversion. If the mighty Dollar continues to steal Gold's safe-haven flows, the precious metal may sink lower in the short term.

In regards to the technical picture, the precious metal is under pressure on the daily charts. A breakdown below $1715 may open a path back towards $1700 and $1670. Should $1715 prove to be reliable support, prices may rebound towards $1747.


Source  
It's time for fiscal policymakers to deliver30 Jul, 2020  

The Fed's Chairman, Jerome Powell, did a credible job on Wednesday of keeping monetary policy unchanged, while still managing to meet markets expectations...

Bright prospects for the Euro23 Jul, 2020  

The initial mild reaction to the EU summit agreement has been taken over by the bulls as EUR/USD has surged to 21-month highs. Despite plenty of good...

Dollar to be depressed over rosier global economic outlook?16 Jul, 2020  

The Dollar will be on focus as investors digest a slew of fresh insights into the state of the global economy. The Dollar Index's (DXY) support level at 95.7 has...


Q2 set to end on risk-on note30 Jun, 2020  

Asian stocks are advancing on the final trading day of June, after a positive session on Wall Street, with market sentiment buoyed further by China's better-than-expected June PMI readings.

Beware Quadruple Witching: More volatility ahead?19 Jun, 2020  

Heightened volatility has been a staple of US equities since March, with the VIX index staying stubbornly higher compared to its long-term average of sub-20 levels...

Will the second wave of Covid-19 end the current rally?19 Jun, 2020  

It has been one hundred days since the WHO declared the coronavirus outbreak a pandemic. During this time, we experienced the worst sell-off and fastest...


To believe or not to believe in virus vaccine hopes?20 May, 2020  

The euphoria that roared across financial market sentiment throughout yesterday and encouraged huge rallies in major U.S stock markets is running thin on flames today...

Gold blasts to new highs but can this joy last?19 May, 2020  

Investors are happy to add risk into portfolios with stocks and oil prices cheering this sentiment but at the same time, gold has reached its highest level...

Will the clock unveil more COVID-19 cases as restrictions ease?12 May, 2020  

Market volatility remains muted, however the crossroads appear to be getting closer where questions will be asked if eased restrictions are contributing...