EUR/USD analysis: stocks at records hit the common currency

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1417

It was a really bad day for the greenback, but the common currency was unable to benefit from its rivals' weakness, plunging with the strong momentum triggered in worldwide equities by Fed's Yellen. The chief of the American central bank testified before the Congress, with her statement released 90 minutes before the event. The document was seen as dovish, as policymakers noted uncertainty surrounding inflation, and while reaffirming that they are still in the tightening path, it won't take much more rate hikes to reach what they consider "normal." After the statement and the Q&A, market players reconsidered that Yellen was not that dovish after all, but the dollar remained under pressure anyway, as news coming from different fronts, such as Canada rising rates, or strong employment data in the UK, fueled demand for high yielding currencies.

The EUR/USD pair closed the day above the 1.1400 figure, having reached a fresh 2017 high of 1.1489 at the beginning of the day, and despite the sharp intraday retracement, the downward potential remains limited according to the 4 hours chart, as the price settled a few pips above a still bullish 20 SMA, whilst technical indicators are currently bouncing from their mid-lines, after correcting overbought conditions reached earlier on the day. The pair has an immediate support in the 1.1380/90 region, where buying interest surged ever since the week started, followed by a daily ascendant trend line currently around 1.1340.

Support levels: 1.1385 1.1340 1.1290

Resistance levels: 1.1460 1.1490 1.1525

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.