EUR/USD Current price: 1.2396
- Tuesday only relevant figure to be the German ZEW survey.
- Dollar benefits from dull trading modestly up across the board.
The American dollar edged marginally higher in a dull Monday, with multiple holidays keeping volumes at their minimum. China, Canada, and US markets have been closed amid different local celebrations, keeping the macroeconomic calendar also extremely thin. Dollar gains through the day seem a follow-through of Friday's advance but still seems corrective in the middle of its bearish trend. The EU released some minor macroeconomic figures that anyway didn't affect the market, the December current account which recorded a surplus of €29.9 billion, below the expected €30.5B, or a previously revised €35.0B, while in the same month, Construction output posted a modest 0.1% advance MoM and 0.5% YoY. Tuesday will bring little from the fundamental side, with the only relevant release being the German ZEW sentiment survey for February.
The 4 hours chart shows that the pair spent the day below the 38.2% retracement of its latest bullish run between 1.2205 and 1.2554 at 1.2420, with short-lived spikes beyond the level being quickly reverted. In the same chart, the 20 SMA has lost upward strength, turning flat some 60 pips above the current level, while the technical indicators entered bearish territory, but lack directional strength at the time being, amid the limited intraday range. The pair has an immediate short-term support at 1.2380, the next Fibonacci level, but a more relevant one at 1.2340, where it has the 61.8% retracement of the mentioned rally.
Support levels: 1.2380 1.2340 1.2300
Resistance levels: 1.2425 1.2450 1.2490
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold flirts with record highs above $2,230, all eyes on US PCE data
Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.