EUR/USD Forecast: 1.0453 next bearish target

Valeria Bednarik FXStreet

The EUR/USD pair fell down to 1.0497, right after London's opening, barely recovering some ground after the release of the German IFO survey. Business sentiment rebounded in February with the index up to 111.0 from previous 109.8, with the assessment of the current situation up to 118.4 and expectations also on the rise, up to 104. Euro area annual inflation was 1.8% in January 2017, up from 1.1% in December 2016, down monthly basis by 0.8%, as expected.

Still pending of release are US existing home sales and the Minutes of the latest FOMC meeting. The common currency remains pressured by political woes in the region, and is among the most vulnerable to dollar's strength, particularly if the Minutes are seen as hawkish.

The pair trades at its lowest since January 11th, and at risk of falling further, given that the 1.0520 previous support now acts as immediate resistance, containing the short-lived recovery from the mentioned low. Technical readings favor additional slides as in the 4 hours chart, the 20 SMA has accelerated its decline well above the current level, whilst technical indicators maintain soft bearish slopes within oversold territory, with no signs of changing bias.

A downward acceleration through 1.0490 should lead to a test of 1.0453, Feb. 11 low, with further slides below it pointing to a decline down to the 1.0420 region. Above 1.0520 on the other hand the pair can recover up to 1.0565, the 23.6% retracement of the post-US election slump.

View live chart of 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 hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.