EUR/USD analysis: Fed opened doors for a test of 1.1800

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1735

The EUR/USD pair traded uneventfully around the 1.1640 level, and after falling down to 1.1612, its lowest for the week, but resumed its advance breaking higher and settling at its highest since January 2015, in the 1.1730 region, following the US Federal Reserve monetary policy meeting. The Central Bank failed to surprise investors, keeping rates unchanged, as largely expected and barely changing the wording on the statement, particularly when it comes to reducing the $4.5 billion balance sheet, saying that it will start "relatively soon," and the market understanding it as September. As for inflation, policy makers still believe that it will “stabilize around the Committee’s 2% objective over the medium term," while the labor market has continued to strengthen. With no signs of accelerating its tightening pace, the market resumed dollar's selling, with the greenback now trading at fresh multi-month lows against most of its major rivals.

As for the EUR/USD pair technical outlook, the price has regained ground above its 20 SMA in the 4 hours chart, whilst technical indicators turned sharply higher, maintaining their upward slopes within positive territory, and supporting further gains ahead on a break above the 1.1710 price zone, where the pair topped this week and back in 2015. Beyond the level, the rally could extend up to the 1.1800 price zone, where the pair has its 200 SMA in the weekly chart, and the top of the daily ascendant channel coming from mid-April with little in the way. A reversal in the ongoing bullish trend has become more unlikely, but intraday downward corrective movements can't be disregarded. Still, the pair will remain bullish even in the case of a decline down to 1.1580.

Support levels: 1.1690 1.1650 1.1615

Resistance levels 1.1745 1.1790 1.1840

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 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.