EUR/USD Forecast: Struggling to extend gains beyond 1.2100

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2095

Weakening US Treasury yields pushed the American dollar sharply lower.
The German Trade Balance posted a surplus of €16.1 billion, below expected.
EUR/USD is trading at one-week highs, losing bullish strength.

The EUR/USD pair is up this Tuesday, retreating just modestly ahead of Wall Street’s opening from a daily high of 1.2115. The dollar accelerated its slump as US Treasury yields retreated further from almost one-year highs reached this Monday. European indexes are mixed, stuck around their opening levels, leading to some pre-opening losses in Wall Street.

Germany published the December Trade Balance, which posted a surplus of €16.1 billion, below expected. In the same month, the Current Account Balance was also below expected but improved to €28.2 billion from €21.2 billion in November. The US published the NFIB Business Optimism Index, which printed in January at 95, down from the previous 95.7. Later into the session, the country will release the December JOLTS Job Openings.

EUR/USD short-term technical outlook

The EUR/USD pair has surged past the 38.2% retracement of its November/January rally at 1.2070, the immediate support level. Now trading around 1.2100, the 4-hour chart shows that technical indicators are losing bullish momentum after reaching overbought levels. The pair is currently developing above a directionless 100 SMA, while the 20 SMA slowly turns higher far below the current level.

Support levels: 1.1970 1.1925 1.1885

Resistance levels: 1.2120 1.2160 1.2205

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 faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.