EUR/USD outlook: Euro rises further on weaker Dollar

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD rises for the third straight day, benefiting from weaker dollar on speculations of the magnitude of Fed’s rate cut on Wednesday.

Recovery leg from a higher base (formed after a double rejection just above psychological 1.10 support) retraced so far 61.8% of 1.1201/1.1002 pullback, adding to upside prospects.

Improved picture on daily chart (MA’s returned to bullish setup / RSI continues to head north above neutrality territory) supports the notion however, ascending 14-d momentum is still in negative territory and warning of potential recovery stall.

Daily close above Fibo 61.8% (1.1125) is needed to generate fresh bullish signal for attack at 1.1154 (Fibo 76.4% / Sep 6 spike high) break of which to neutralize downside risk and open way for full retracement of 1.1201/1.1002 correction.

Caution on failure at 1.1125 and return below 20DMA (1.1092) which would weaken near-term structure.

Res: 1.1129; 1.1154; 1.1184; 1.1201.
Sup: 1.1101; 1.1092; 1.1065; 1.1049.

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

1. R3 1.1126
2. R2 1.1114
3. R1 1.1095
PP 1.1083
1. S1 1.1063
2. S2 1.1051
3. S3 1.1032

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 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.