EUR/USD Forecast: Getting ready to rock on the US inflation report

The EUR/USD is trading slightly lower, consolidating previous gains amid OK European data.
An abrupt end to the calm is in sight with the all-important US inflation report.
The technical picture is balanced, but with a modest upside bias.

Yohay Elam FXStreet

The EUR/USD slightly lower around 1.2340, consolidating previous gains. Data in the euro-zone came out mostly as expected, with Germany posting a growth rate of 0.6% q/q, Italy seeing a small miss with 0.3% against 0.4% expected, and the euro-zone confirming the 0.6% growth rate reported in the initial read for Q4 2017.

The stage is all set for the all-important and highly anticipated US inflation report. Financial markets are getting hyped and perhaps overhyped about the event. Core CPI is expected to remain unchanged at 1.8% y/y, and any outcome may trigger big moves. See the full preview here.

EUR/USD Technical Analysis

The mounting tension may explode once the data is out. Despite the recent fall, the technical picture is slightly positive for the pair.

The RSI remains above 50, pointing to further gains. Momentum has turned negative, but only just. The broader trend is to the upside with high lows on the daily chart. Both uptrend support lines that are drawn on the chart point to further gains.

The pair is trading just below 1.2350, which worked as resistance and as support earlier in the year. On the upside, 1.24 can serve as an immediate line of resistance in case of a soft US inflation read. A further cap is at the 2018 high of 1.2537.

Looking down, a rise in US inflation could send the pair to the round number of 1.23, and a further downfall could challenge Friday's lows at 1.2205. The next cushion is close: 1.2160, before the all-important 2017-peak of 1.2090.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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.