EUR/USD Forecast: Bulls to retain control if 1.0820 is confirmed as support

EUR/USD has advanced above 1.0800 following a quiet Asian session.
ECB commentary and risk flows help EUR/USD edge higher.
Near-term technical outlook suggests that sellers remain on the sidelines.

Eren Sengezer FXStreet

After having closed in positive territory near 1.0800 on Monday, EUR/USD has continued to stretch higher early Tuesday. 1.0820 aligns as key technical level and buyers could remain interested once that level is confirmed as support.

The risk-positive market environment on Monday made it difficult for the US Dollar to keep its footing and allowed EUR/USD to stretch higher.

Additionally, comments from European Central Bank (ECB) officials reiterated their willingness to stay focused on battling inflation. Policymaker Mario Centeno noted that the size of the next rate hike will depend on data and Isabel Schnabel said that they had no real concerns about financial stability risks, adding that there were no signs of weakening in the labour market.

Later in the session, ECB President Christine Lagarde will deliver a speech at the opening ceremony of the Bank for International Settlements Innovation Hub Eurosystem Centre. She is not expected to comment on the policy outlook.

The US economic docket will feature the Conference Board's Consumer Confidence Index for March. In February, the one-year consumer inflation rate expectation component of the survey declined to 6.3% from 6.7% in January. A similar decline could feed into the expectation that the Fed will keep its policy rate unchanged at the next policy meeting and put additional weight on the US Dollar and vice versa.

US Consumer Confidence Preview: No good news for Americans.

Meanwhile, US stock index futures trade mixed in the European session. In case risk flows dominate the markets in the second half of the day, EUR/USD should hold its ground. On the other hand, a negative shift in risk perception is likely to limit the pair's upside.

EUR/USD Technical Analysis

The Relative Strength Index (RSI) indicator on the four-hour chart stays near 60, suggesting that EUR/USD has more room on the upside before turning technically overbought. At the time of press, the pair was trading within a few pips of 1.0820, where the Fibonacci 23.6% retracement of the latest uptrend is located. Once that level is confirmed as support, additional gains toward 1.0870 (static level) and 1.0900/1.0910 (psychological level, end-point of the uptrend) could be witnessed.

On the downside, the 20-period Simple Moving Average (SMA) acts as dynamic support at 1.0800 ahead of 1.0760 (Fibonacci 38.2% retracement, 50-period SMA) and 1.0720 (Fibonacci 50% retracement).

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.