The lack of any real economic data has kept currency volatility relatively at a standstill to begin the last week of January trading. This has helped to keep the Euro relatively stable ahead of resistance at the 1.3500 psychological figure. Incidentally, the barrier holds the key to any directional bias for the single currency in the near term.
Technically Speaking
With the recent upside move, the EURUSD has run into resistance at 1.3500. The round figure holds some formidability, given it prevented a similar break higher back in February last year and is likely to remain steadfast in light of this new bullish wave. Technical oscillators are supportive of the notion, remaining in overbought territory, and printing an 88.28 count.
As a result, any failure to break above the barrier would purport a decline towards initial support via the 1.3154 figure.
However, upside penetration of the current resistance barrier would prompt a likely extension higher towards subsequent resistance circa 1.3832. However, the notion remains contingent on a concerted close above the 1.3495 fib resistance level.
Euro Optimism Grows
Sentiment of further Euro appreciation is being widely supported by a growing net long position in the single currency per the CFTC’s Commitment of Traders report. The latest edition – for the week ending January 22nd – showed that Euro longs were built by the tune of $2.3 billion to a net long $3.6 billion position. This is a 192% increase in long positioning week over week, and remains bullishly supportive of a potential break out of the resistance figure.
Thing To Keep In Mind
With little data set for the next 48 hours, traders will be keeping an eye out for the GfK German consumer sentiment survey set for release tomorrow. Although the report is expected to eke higher to 5.8 from last month’s 5.6, the uptick would represent the first gain in the last three months, and compound on already growing optimism portrayed by both the Ifo and ZEW surveys last week.
Technically Speaking
With the recent upside move, the EURUSD has run into resistance at 1.3500. The round figure holds some formidability, given it prevented a similar break higher back in February last year and is likely to remain steadfast in light of this new bullish wave. Technical oscillators are supportive of the notion, remaining in overbought territory, and printing an 88.28 count.
As a result, any failure to break above the barrier would purport a decline towards initial support via the 1.3154 figure.
However, upside penetration of the current resistance barrier would prompt a likely extension higher towards subsequent resistance circa 1.3832. However, the notion remains contingent on a concerted close above the 1.3495 fib resistance level.
Euro Optimism Grows
Sentiment of further Euro appreciation is being widely supported by a growing net long position in the single currency per the CFTC’s Commitment of Traders report. The latest edition – for the week ending January 22nd – showed that Euro longs were built by the tune of $2.3 billion to a net long $3.6 billion position. This is a 192% increase in long positioning week over week, and remains bullishly supportive of a potential break out of the resistance figure.
Thing To Keep In Mind
With little data set for the next 48 hours, traders will be keeping an eye out for the GfK German consumer sentiment survey set for release tomorrow. Although the report is expected to eke higher to 5.8 from last month’s 5.6, the uptick would represent the first gain in the last three months, and compound on already growing optimism portrayed by both the Ifo and ZEW surveys last week.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.