EUR/USD analysis: modestly higher short term, but 1.1820/30 key

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1747

The EUR/USD pair managed to advance modestly this Monday, as half a holiday in the US, with Wall Street working, but pretty much everything else closed in the country, keeping majors within limited ranges. The pair ended the day marginally higher around 1.1750, merely 20 pips above Friday's close, with trading also restricted ahead of first-tier events that will take place later this week, starting this Tuesday, with the possibility of Catalonia declaring its independence from Spain, something the markets fear, but are still underestimating. Mid week, the Fed will release the Minutes of its latest meeting, while on Friday, it will offer final September inflation figures.

Data released this Monday in Europe was EUR-supportive, as German industrial production rose by more than expected in August, posting its biggest monthly increase in more than six years, up by 2.6% in the month, bouncing from July's 0.1% decline. When compared to a year earlier, production rose by 4.7%, from 4.2% in July. Also, the EU Sentix investor confidence jumped to 29.7 in October, its highest in 10 years, beating expectations of 28.5.

From a technical point of view, the pair has gained some bullish traction in the short term, but would take the price to settle above the 1.1820/30 strong static resistance area to see the pair actually turning positive and bulls daring for more. In the meantime, the 4 hours chart shows that the price advanced above 1.1730, which in the mentioned chart presents its 20 SMA, while the level also represents the 23.6% retracement of the April/September rally. Indicators in the mentioned chart head modestly higher after entering positive territory, supporting some additional gains up to the 1.1780 region, the immediate resistance. Below the mentioned Fibonacci support, on the other hand, the risk turns towards the downside, with scope then for a retest of the 1.1660 price zone.

Support levels: 1.1730 1.1695 1.1660

Resistance levels: 1.1780 1.1825 1.1850

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.

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold sellers remain in control while below 21-day SMA

Gold is falling for the third straight day on Tuesday, having run into sellers on several occasions at the $4,200 level. The bullion awaits a clear trading impetus amid uncertainty about the US Federal Reserve’s interest rate outlook and looming geopolitical risks.

Ripple and Cardano face downside risk as Solana consolidates

Top altcoins, including Ripple (XRP), Cardano (ADA), and Solana (SOL), stall on Tuesday after a bearish week, suggesting a brief pause in selling pressure. The technical outlook for XRP and ADA indicates a downside bias, while SOL shows mixed signals, with the price holding above $100 as momentum eases. Ripple trades at $1.2974 at press time on Tuesday, keeping a bearish near-term tone.

Markets now see no hike in October, but inflation is still a major concern

US inflation has returned to the spotlight after the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports showed a significant acceleration in price pressures. The data raised concerns that the Federal Reserve may need to maintain restrictive monetary policy for longer, pushing interest-rate expectations higher and putting pressure on stocks and gold.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.