EUR/USD Forecast: Dollar’s strength persists, 1.20 in the cards

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2078

Market players awaiting first-tier events to take place later in the week.
Focus on the US Joe Biden´s inauguration next Wednesday.
EUR/USD bearish and pressuring a mid-term Fibonacci support level.

The American dollar kept advancing this Monday, with EUR/USD reaching a one-month low of 1.2053, bouncing just modestly from the level to settle in the 1.2070 price zone. A holiday in the US kept major pairs confined to tight ranges during the American afternoon, as investors await for first-tier events later in the week. The European macroeconomic calendar had nothing relevant to offer, and trading remained dull, although with the greenback retaining its strength.

This Tuesday, Germany will publish December inflation figures and the January ZEW survey. The Economic Sentiment is seen contracting both in the country and the EU. The US won’t publish relevant macroeconomic data, with the focus on the US Joe Biden´s inauguration next Wednesday.

EUR/USD short-term technical outlook

The EUR/USD pair has room to test the critical 1.2000 threshold. The pair is trading around the 38.2% retracement of its November/January rally at 1.2062. A sustained decline below the level should open the door for a steeper decline. In the near-term, and according to the 4-hour chart, the risk remains skewed to the downside, as the 20 SMA heads firmly lower below the larger one and above the current level. Technical indicators remain within negative levels, far from indicating an interim bottom.

Support levels: 1.2050 1.2010 1.1970

Resistance levels: 1.2090 1.2130 1.2180

View Live Chart for the EUR/USD

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

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 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.