EUR/USD Price Forecast: Interim top around 1.20?

EUR/USD is looking to consolidate above the 1.18 mark.
The ECB event (Thursday) could be key for the pair’s direction.

Pablo Piovano FXStreet

EUR/USD is attempting a side-lined theme in the mid-1.1800s at the beginning of the week, managing to regain traction following last week’s lows in the 1.1780 region.

The pair has come under downside pressure soon after hitting fresh +2-year peaks above 1.20 the figure on September 1 and risks some consolidation or even a deeper pullback if it does not re-visit that area in the short-term horizon (ideally).

On the macro scenario, the upcoming ECB event on Thursday appears to be crucial for the pair’s direction in the near/medium-term, as the central bank is expected to shed further details on the progress of the economic recovery in the region as well as its outlook for the next months while investors will also closely follow any mention of potential stimulus measures.

Short-term Outlook

EUR/USD faces initial contention in the mid-1.1700s ahead of the more relevant 1.1700 neighbourhood. The latter is also reinforced by a Fibo level (of the 2017-2018 rally). The daily RSI did not confirm the new top beyond 1.20, opening the door for some near-term weakness. On the upside, the immediate hurdle still emerges at the recent peak near 1.2010.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.