EUR/USD Forecast: Unable to attract investors

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1132

US inflation met the market’s expectations in December, failed to impress.
EU-US trade tensions dented demand for the shared currency.
EUR/USD stuck around 1.1100, upside limited by Fibonacci resistance at 1.1145.

The market mood was not that positive this Tuesday, as market players took their eyes of the Middle-East and focused on other issues. The EUR/USD pair continued to trade within a limited range throughout the day, ending it with modest losses at around 1.1130. Trade returned to the spotlight as EU Trade Commissioner Phil Hogan visited his counterpart in Washington to pour some cold water on the trade relationship between the two economies after US President Trump threatened to retaliate on French tax on US tech-firms. Sentiment suffered the most as the White House announced it would include Switzerland in a currency manipulator watch-list.

The US published the latest December inflation data, which came in as the annual core CPI came as expected at 2.3% YoY, which suggest no need for the Fed to change the curse of monetary policy. This Wednesday, Germany will release Real GDP Growth, foreseen at 0.6% against the previous 1.5%. The EU, on the other hand, will publish the November Trade Balance and Industrial Production. The US will publish December PPI although the market will focus on the US-China trade deal, and the details of phase one, expected to be out this Wednesday

EUR/USD short-term technical outlook

The EUR/USD pair is trading just below the 38.2% retracement of its latest daily slide, measured between 1.1238 and 1.1084 at 1.1145. The pair is neutral-to-bullish in its 4-hour chart, still stuck between directionless moving averages and with technical indicators that have turned flat within positive levels. The pair could extend its advance in the short-term once above the mentioned Fibonacci resistance, but chances of a sustained advance are still seen limited.

Support levels: 1.1090 1.1065 1.1020

Resistance levels: 1.1145 1.1180 1.1220

View Live Chart for 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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.