EUR/USD analysis: Above 1.0700, a revisit to 1.0770 is possible

Matías Salord FXStreet

EUR/USD Current price: 1.0717

The euro was among the strongest currencies during most of the day, supported by the latest French polls that showed candidate Macron as the most likely to win the elections. Still, markets remain sensitive to surprises after last year’s Brexit Referendum and Trump’s victory in November. During the US session, the euro lost strength and pulled back erasing gains. At the same time, greenback gained momentum following comments from US Treasury Secretary Mnuchin that mentioned that they “are close” to bring a major tax reform. Trump’s administration appears to be ready again to attempt another repeal of Obamacare, with a vote in Congress likely next Wednesday.

On the economic front, in the Eurozone, February construction output jumped 6.9% while in the US initial jobless claims rose above expectations and the Philly Fed showed a significant decline. Equity prices were unaffected by data. Indexes around the globe finished in green and the Dow Jones extended gains following Mnuchin comments, rising more than 1%.

The EUR/USD pair rose above 1.0730 and jumped to the next resistance at 1.0770/80; it was unable to break higher. Then, during the second half of the American session pulled back, erasing gains following Mnuchin comments. The euro held above 1.0700 and it bounced toward 1.0730. The decline pushed technical indicators to the downside, giving negative signals for the euro in the 4-hour chart. The bearish signals will take more relevance if price drops below 1.0700, an important support, not only psychological, but also because it was respected yesterday, and is where the 20-SMA stands. After the slide of the last hours, some consolidation with a rebound is expected, with some chances of a revisit to the 1.0770 area, particularity if it rises back above 1.0740.

Support levels:1.0705 1.0670 1.0630

Resistance levels: 1.0775 1.0805 1.0820

View Live Chart for the EUR/USD

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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 clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

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

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.