EUR/USD outlook: Consolidation to precede final push towards 1.1422 target

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro pulls back in early European trading on Thursday after probe above Fibo barrier at 1.1362 (76.4% of 1.1422/1.1168).
The single currency is inflated by risk sentiment and generated positive signal on Wednesday’s eventual close above pivotal Fibo level at 1.1325 (61.8%) and formation of bullish engulfing pattern (Tue/Wed).
Cracking the last obstacle (1.1362) and close above this level opens way towards 10 June peak at 1.1422, violation of which could spark acceleration towards 1.1500 zone (2020 high lays at 1.1494, posted on 9 Mar).
Current easing is seen as positioning ahead of fresh push higher and signaled by overbought 4-hr studies.
Broken Fibo barrier at 1.1325 should ideally contain, but deeper dips towards 1.1295 (daily Kijun-sen / broken 50% retracement level) cannot be ruled out.
Solid German exports data, released this morning, add to positive tone, with markets focusing US weekly jobless claims for fresh signals.

Res: 1.1370; 1.1400; 1.1422; 1.1457
Sup: 1.1325; 1.1295; 1.1265; 1.1250

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1457
2. R2 1.1404
3. R1 1.1367
PP 1.1315
1. S1 1.1278
2. S2 1.1225
3. S3 1.1188

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.