EUR/USD Forecast: Under pressure ahead of the ECB’s decision

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1089

Trump’s threat to impose tariffs of European vehicles weighs on the EUR.
The market’s sentiment improved a bit, but investors remain cautious.
EUR/USD at risk of falling sharply if it loses the 1.1065 level.

The greenback is weaker against most major rivals as the market sentiment is in better shape this Wednesday. However, the shared currency remains subdued, with the EUR/USD pair trading below the 1.1100 figure and near its January low of 1.1074, achieved during Asian trading hours. The lack of interest in the EUR may be related to the upcoming ECB Monetary Policy Meeting this Thursday, as speculative interest wants to hear from Mrs Lagarde before taking firmer positions. Also, Trump´s threats to impose tariffs on European cars weigh.

The EU didn’t release relevant macroeconomic data. As for the US, it just published January 17 MBA Mortgage Applications, which were down by 1.2%. The Chicago Fed National Activity Index was down to -0.35 in December, worse than anticipated. Later in the day, the US will release December Existing Home Sales, seen up by 1.2% when compared to a month earlier.

EUR/USD short-term technical outlook

The EUR/USD pair is bearish, according to the 4-hour chart, as the pair continues to develop below all of its moving averages, and with a firmly bearish 20 SMA providing dynamic resistance. The Momentum indicator faltered around its mid-line, slowly turning south, while the RSI consolidates at around 43, all of which reflects the absence of buying interest. The main support is 1.1065, with a steeper decline expected on a break below it.

Support levels: 1.1065 1.1020 1.0980

Resistance levels: 1.1110 1.1145 1.1180

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 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.