EUR/USD analysis: holding on to gains, but 1.0820 caps

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0816

Following a consolidative stage that extended during the first half of the day, the EUR/USD extended its monthly advance up to 1.824 after the US opening, as the dollar got dragged lower by poor US data and falling equities. The EUR/USD pair however, was unable to hold on to gains, and closed the day pretty much flat a few pips above the 1.0800 level. Risk aversion was again the main theme leading the markets, as following Wednesday's equities slump, a terrorist incident took place near the UK Parliament with at least two people dead.

In the data front, the EU released a minor report, the its current account for January, which recorded a surplus of €24.1 billion, below market's expectations, and December result, this last revised lower to €30.8B. In the US, sales of existing homes fell by 3.7% in February, at a 5.48 million seasonally adjusted annual rate, below previous 5.69M and expectations of 5.58M. Also, Fed's Kaplan hit the wires, reaffirming that the US Central Bank would need just two more rate hikes this year, and that policymakers will continue trimming its massive balance sheet gradually.

Despite still contained by a major Fibonacci resistance at 1.0820, the 50% retracement of the post-US election slide, the pair retains its bullish bias, at least technically, given that in the 4 hours chart, technical indicators have resumed their advances within positive territory after approaching their mid-lines, whilst 20 SMA maintains a sharp bullish slope below the current level. The pair peaked at 1.0828 last Friday, the level to surpass to confirm additional gains up to 1.0873, December monthly high. As long as the price holds above the 1.0700 region, bulls will remain in control of the pair.

Support levels: 1.0765 1.0730 1.0700

Resistance levels: 1.0830 1.0870 1.0910

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 recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.