EUR/USD: Is this the uy signal we have been waiting for? [Video]

Richard Perry Independent Analyst

EUR/USD

We have been looking for a euro technical rally for several sessions and finally, there was some kind of pressure release for the oversold position on EUR/USD. A strong positive candle added +60 pips and broke the sequence of selling pressure. Is this the buy signal we have been waiting for? It is too early to say. A two and a half week downtrend may have been broken, but aside from RSI above 30 (the most basic of buy signals on momentum) there is little confirmation yet. There need to be bull crosses confirmed on MACD and Stochastics, which is not the case so far. Today’s corrective slip back now needs to build support this morning, for a higher low (ideally above $1.0800) to help develop the support at $1.0775. The hourly chart shows how the resistance of an old low was a barrier on Friday at $1.0865, and this will now become a key resistance in the coming days if a rally is to take hold. Trading back above $1.0825 (the original resistance for a recovery) will improve again, whilst $1.0840 (overnight high) is also a level to watch. EUR/USD looks as though it could be a market in transition, but far more needs to seen first. Above $1.0865/$1.0875 opens $1.0980.

Author

Richard Perry

Independent Analyst

Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.