EUR/USD: A chance to buy? [Video]

Richard Perry Independent Analyst

EUR/USD

The progress of the euro rally has been remarkable in recent sessions. We have previously discussed the acceleration of the positive candles, and these continue to build. Yesterday’s huge bull candle added around +150 pips and the move has now retraced around 50% Fibonacci of the massive $1.1492/$1.0635 sell-off. Momentum indicators are obviously turning positive with this move and continue to recovery, with upside potential. We note that since February, EUR/USD has seen huge trending moves over two to three week periods, moving between oversold, overbought and back again. Given we are only a handful of sessions into this move, the upside bias remains strong. The hourly chart shows an acceleration away from the uptrend of the recovery and this may slightly weigh on the move today. There is also a mild negative divergence on hourly RSI (and MACD/Stochastics lines crossing lower). This could induce an intraday slip back at least. However, we would see this as a chance to buy. Initial support at $1.1020 this morning, before a good support band $1.0950/$1.0980. Today’s high at $1.1085 is initial resistance but closing well clear of the 50% Fib at $1.1065 is the next bullish step forward.

Author

Richard Perry

Independent Analyst

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.