EUR/USD daily analysis

Carol Harmer Charmer Trading

EUR/USD

Euros holding at lower levels...and on the 4H charts you have the 9 and 21 period M/As converging at 1.1089/91 to lend support to the market...Now this also ties in with the Daily Pivot @ 1.1089...so there is support down here...

You also have the 1.1070/60 area as good support...so I am long Euros @ 1.1095, will add to the long position if we dips lower towards 1.1040/20....and will hold unless we make a break of 1.0980...I just feel that at the moment Euros look ok...and although I hate trading August markets I'm here so I might as well take advantage of any move I see..If the Euro can make a break above 1.1118 we should be in for a rise to at least the R2 at 1.1131..Now this all does depend short term if the Euro can stay above the 1.1089 DP...

If we fail to hold here all is not lost as the spike to 1.1027 would still act as a cushion and leave the market with a Double Bottom formation which is bullish...Technically we are oversold on the daily/weekly and monthly timeframes and it is quite rare for all these 3 time frames to be at such oversold levels at the same time...So may the $ is in for a bit of a beating...If you take a look at the $Index chart you can see that when we spiked to 98.93 that week we closed lower..and $Index is overbought with diverging indicators so you need to be really careful of this...I think as August draws to a close and we all come back slightly more refreshed on Sept 2nd the markets will take a direction and run with it..and for me looking at the $Index I see this has the potential to trade a lot lower... thus currencies especially the Euro should benefit from this...If we take out 1.1135 look for 1.1170/80..

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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.