|premium|

EUR/USD Forecast: The hunt for 1.2000

  • EUR/USD moves higher, although still trades below 1.20.
  • The 200-day SMA around 1.1995 emerges as the next hurdle.
  • Markets’ focus will be on key releases in the US calendar.

EUR/USD extends the side-lined theme so far this week, always above the key 1.1900 yardstick albeit capped by the 1.1970/80 band for the time being.

Same performance is seen in the greenback. Although flat yields of the US 10-year reference somewhat justify the consolidative mood in the buck, the recent upside in yields of the German Bund comes in contrast with the lack of direction in spot. Furthermore, it seems EUR/USD pays more attention to the US-German yields spread in the shorter end of the curve, particularly following the FOMC event.

Further consolidation in EUR/USD looks likely, as market participants seem to have fully adjusted to the recent message by the Federal Reserve and have already priced in the strong economic bounce on both sides of the Atlantic. That, coupled with the usual summer lull should leave the pair somehow unmotivated until speculations around the next Jackson Hole Symposium start to kick in.

On the technical sphere, EUR/USD still navigates in levels close to the oversold territory. Occasional bullish attempts should meet initial resistance at the Fibo level near 1.1980 ahead of the more significant barrier at the critical 200-day SMA, today at 1.1994. Further north comes in the psychological yardstick at 1.20 the figure. Above the 200-day SMA, the selling pressure is expected to mitigate.

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 PremiumSign In

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure 

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.