EUR/USD Forecast: modestly bullish, US Retail Sales awaited

Valeria Bednarik FXStreet

The EUR/USD pair holds on to its weekly gains early Friday, having met short term buying interest around 1.0600 on a pullback during Asian trading hours. Overnight, Chinese trade figures showed signs of slowing growth, as December's surplus reached $40.82 billion, versus $44.61 billion in the previous month, whilst exports plunged 6.1%, against an expected advance of 0.1%. Imports rose by 3.1%, beating expectations of 2.7%, but below a previously revised 4.7%. As for the ongoing European session, there's no data to take care of, leaving investors focused in the upcoming US Retail Sales and PPI December data. Sales in the US are expected to have advanced by 0.7% against previous 0.1%, while factory inflation is also expected to have advance. The figures may restore partially confidence in the USD, but at this point, the dollar remains vulnerable.

Technically, the pair retains a modest bullish stance according to the 4 hours chart, given that the price is above its 20 and 100 SMAs, although the shortest remains horizontal, reflecting the limited demand at the current levels. Technical indicators in the mentioned chart are standing in positive territory, but without directional strength. The pair has an immediate short term resistance at 1.0650, with a break above it favoring a new leg higher up to 1.0710, the 38.2% retracement of the latest monthly decline, whilst beyond it, the pair has scope to retest the critical 1.0800/40 region next week. Below 1.0600 on the other hand, the slide can extend towards 1.0560 first, en route to 1.0520.

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 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.