EUR/USD Forecast: bearish bias remains, 1.20 might continue to cap immediate upside

Haresh Menghani FXStreet

The US Dollar reversed the majority of its China report-led steep losses, with the EUR/USD pair preparing to extend overnight retracement from levels beyond the key 1.20 psychological mark. The USD stumbled across the board after an unconfirmed report that China is considering slowing or halting its purchases of the US Treasuries. However, a late pull-back in the US bond yields eased some of the strong bearish pressure surrounding the greenback and dragged the pair back below mid-1.1900s.

The buck got an additional boost after a Chinese government source clarified on Thursday that media reports could be based on wrong information. The pair now seems to have stabilized as traders now look forward to the ECB Monetary Policy Meeting Accounts (minutes) and the US PPI figures for some fresh impetus.

Yesterday's price action clearly indicates heavy selling interest around the 1.20 handle, which adds credence to the bearish double-top chart pattern formation on daily charts. A sustained break below the 1.1925-20 immediate support would reinforce the bearish outlook and accelerate the slide towards 1.1885 support, marking 38.2% Fibonacci retracement level of 1.1554-1.2089 recent upswing. The downward trajectory could further get extended towards the 1.1800 handle, nearing 50% Fibonacci retracement level.

On the flip side, any up-move above 1.1970-75 immediate resistance might continue to confront fresh supply near the 1.2010-20 region, which if cleared might lift the pair back towards 1.2060-70 supply zone. The key upside resistance remains near the 1.2090 area - September 2017 yearly tops, above which the pair is likely to aim towards testing its next major hurdle near the 1.2165 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.