EUR/USD Analysis: easing optimism weighs on EUR

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1296

European data revived concerns about slowing economic growth.
Wall Street poised to open lower, tracking its overseas counterparts' behavior.

The EUR/USD pair fell below the 1.1300 level and traded at 1.1274, its lowest for the week, as demand for the greenback resumed ahead of the US opening. Dollar's strength came with no specific catalyst, although the positive sentiment that led the way at the beginning of the week began fading, with menaces from US President Trump to impose tariffs on vehicles imported to the country, affected the common currency negatively. Data coming from the EU didn't help, as Italian industrial sales collapsed, while the EU Current account post a seasonally adjusted surplus of €16.0B in December, well below the previous one. The German ZEW survey showed that economic sentiment improved modestly in February, both for the country and the Union, with the latest at -16.6 vs. the previous -18.2.

US Fed's Mester is set to speak ahead of the opening, while the country will release the NAHB Housing Market Index for February foreseen at 59 vs. the previous 58. In the meantime, equities are down in Europe, anticipating a soft start to the day in the United States.

The EUR/USD pair attempted to recover some ground but remains below the 1.1300 figure, and at risk of extending its decline, according to the 4 hours chart, as the pair is barely holding around a flat 20 SMA, still below the larger ones, as technical indicators offer modest downward slopes, the Momentum around its 100 level and the RSI now at 46, skewing the risk to the downside. A break below the mentioned daily low opens the door for a retest of 1.1233, this year low, with further declines probably resulting in a break of the 1.1200 figure.

Support levels: 1.1275 1.1230 1.1190

Resistance levels: 1.1340 1.1380 1.1425

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.