EUR/CHF rebounds but stays in a downtrend

JFD Team JFD

EUR/CHF traded higher on Monday, after it hit support near 1.0742 on Friday. Overall though, the pair continues to trade below the downside line drawn from the high of July 1st, and thus, we would treat today’s recover as a corrective bounce before the next leg south.

The current bounce may continue for a while more, but we see decent chances for the bears to jump back into the action from near the aforementioned downside line and Friday’s high, at 1.0780. They cold then push the action down for another test near 1.0742, the break of which would confirm a forthcoming lower low and perhaps initially target the 1.0718 level, which stopped the price from moving higher on October 28th, November 3rd, and November 5th. That said, if the bears ignore that inside swing barrier, we could see them aiming for the low of November 9th, at around 1.0680.

Shifting attention to our short-term oscillators, we see that the RSI rebounded back above its 30 line, while the MACD, although negative, has just poked its nose above its trigger lines. Both indicators detect slowing downside speed and support the notion for some further recovery before the next leg south.

Now, in order to start examining a bullish reversal, we would like to see the recovery extending, not only above the pre-mentioned downside line, but also above the 1.0794 level, marked by Thursday’s high. This could firstly target the 1.0815 barrier, the break of which could allow advances towards the 1.0840 barrier, which provided resistance on July 23rd. Another break, above 1.0840 may see scope fore extensions towards the 1.0863 zone, which acted as a temporary ceiling between July 9th and 19th.

Author

JFD Team

JFD

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.