EUR/USD: Is it Groundhog Day for bulls? [Video]

Richard Perry Independent Analyst

EUR/USD

It is like Groundhog Day for the euro bulls right now. The European traders come in to build support, only for US traders to come in and smash it all down again. This has happened in almost every session for more than two weeks now. The downtrend formation today comes in at $1.0820 and is still a good basis of resistance. Momentum is still deeply oversold, with the RSI at 21 this morning, whilst MACD and Stochastics are also desperately negative. We have been discussing the prospect of a technical rally for a few days now and whilst this precipitous sell-off continues, there is daily hope that the support of the European session translates through to US trading. For now though, EUR/USD continues to fall at multi-year lows with little real support. There is an argument for $1.0775, however, realistically the next key support is $1.0490/$1.0560. The hourly chart shows resistance $1.0820/$1.0840 and until the hourly RSI is decisively above 60, a technical rally remains elusive.

Author

Richard Perry

Independent Analyst

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.