EUR/USD Analysis: modest uptick doesn't change the technical picture

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1591

US PPI unexpectedly fell in August, putting a temporal halt on dollar's demand.
EUR/USD ranging ahead of ECB's monetary policy meeting next Thursday.

The EUR/USD pair trades lower in range, a handful of pips below the 1.1600 figure, mute for the day as investors are now waiting for Thursday's ECB monetary policy decision. The pair spiked to 1.1596 following news that an Italian 5-Star source reported tensions over the budget, but clarified there are no threats to remove Economy Minister Tria. In the data front, EU figures disappointed, as July Industrial Production decreased by more than expected, falling monthly basis 0.8% vs. the forecasted -0.5%. The YoY figure resulted at -0.1% well below the market's expectations of 1.0%.

The US just released August PPI data, showing that the core Producer Price Index decreased 0.1% in the month, missing the market's forecast of a 0.2% advance. The yearly reading came in at 2.3%, also below the market's forecast and the previous 2.7%. The news put some mild pressure on the greenback ahead of Wall Street's opening, which is poised to start the day slightly higher when compared to Tuesday's close.

From a technical point of view, the pair retains the neutral stance seen on the previous updates as it remains trapped within a congestion of directionless moving averages in the 4 hours chart. Indicators in the mentioned time frame are picking up but the RSI remains around its mid-line and below its previous daily high, offsetting the positive tone of the Momentum. Seems unlikely the pair could leave today its range, with spikes toward the 1.1620/40 region probably resulting in retracements back to the current area on the back of profit-taking.

Support levels: 1.1570 1.1530 1.1500

Resistance levels: 1.1625 1.1660 1.1700

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.