EUR/USD analysis: at a critical inflection point

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1298

US data disappointed, keeping the dollar under pressure.
EU Consumer Confidence seen unchanged at -6.5 in June.

The EUR/USD pair hovers around the 1.1300 figure, up amid dollar's broad weakness following a dovish US Federal Reserve announcement. Powell & Co. dropped their 'patient' stance, as expected, paving the way for a rate cut in the upcoming months. The American currency came under further selling pressure in Asia, as investors kept digesting the negative news. Meanwhile, Treasury yields collapsed to fresh multi-year lows, with the benchmark yield for the 10-year note piercing 2.0% in pre-opening trading. Equities, on the other hand, maintain the bullish momentum, with US indexes approaching record highs.

Ahead of Wall Street's opening, the US released the Q1 Current Account, which printed a larger-than-expected deficit of $130.4B, while the Philadelphia Fed Manufacturing Survey printed 0.3 in June, well below the 11.0 expected. Unemployment claims for the week ended June 14 came in better-than-expected, down to 216K. Pending of release is the EU June preliminary Consumer Confidence Index, expected unchanged at -6.5.

The EUR/USD pair has recovered above a series of Fibonacci levels, and at this point, it has room to extend its gains up to 1.1347, where it topped this June. In the 4 hours chart, the pair is has rallied above all of its moving averages, while technical indicators have reached overbought levels, now partially losing their bullish strength. Overall, the risk remains skewed to the upside as long as the price holds above the 1.1280 area, the immediate short-term support.

Support levels: 1.1280 1.1240 1.1200

Resistance levels: 1.1315 1.1350 1.1390

View Live chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.