EUR/USD Analysis: holding on to gains, but no reason to move

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1313

US data resulted upbeat but failed to motive market players.
EUR/USD stuck around 1.1320 amid better market mood.

Risk appetite persists at the beginning of the week, although the lack of relevant macroeconomic data, and a busy calendar ahead, keep majors within familiar levels. The EUR/USD pair advanced up to 1.1320, being unable once again to sustain gains above the 50% retracement of the 1.1447/1.1183 decline, now hovering a few pips above the 1.1300 mark. So far, the daily range of the pair barely surpassed 20 pips. German's central bank, the Bundesbank, released its monthly report, indicating that the country's economy grew moderately in the first quarter of the year, adding that the underlying growth trend remains subdued, nothing that could surprise market's participants. An update on the health of business growth will be out this Thursday, with April preliminary Markit PMI.

The US just released the preliminary NY Empire State Manufacturing Index for April, which resulted at 10.1 vs. the expected 6.0, although the market didn't react to the positive headline. Later today, a couple of Fed speakers will hit the wires, scheduled to speak in different events.

Ahead of Wall Street's opening, the pair trades at around 1.13 maintaining the positive tone according to technical readings in the 4 hours chart, despite the lack of progress. In the mentioned chart, technical indicators have lost upward strength but hold within positive ground, while the price holds above all of its moving averages, with the 20 SMA heading north above the 100 SMA and about to surpass the 200 SMA, all of them below the current level. Above the daily high, the pair has room to extend its advance up to the 1.1350 price zone, the 61.8% retracement of the mentioned decline.

Support levels: 1.1285 1.1245 1.1200

Resistance levels: 1.1320 1.1350 1.1385

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 remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

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.