EUR/USD: turning neutral short term, Wall Street will set the tone

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1804

A stronger dollar leads the way, although the pair refuses to break lower
US housing data and Wall Street to define direction into next week

The EUR/USD pair hovers above 1.1800, with little life of its own this Friday, as it holds within Thursday's range, although trading lower, as a continued rally in US equities helps the greenback. The pair is down some 60 pips from its daily high purely on dollar's demand, as macroeconomic data released so far was generally positive for the common currency. In Germany, the Producer Price Index rose by 0.3% on a monthly basis, and by 3.1% when compared to a year earlier, both beating market's forecast in September. The EU current account for August posted a larger-than-expected surplus of €33.3 billion while July's figure was revised to 31.5B from a previous estimate of 25.1B. Ahead of the release of US existing home sales figures, the dollar maintains its poise, although equities are poised to open modestly lower.

As for the technical picture, the 4 hours chart shows that the price continues hovering around the 38.2% retracement of its latest bullish run, and between the 100 and 200 moving averages, while the Momentum indicator has lost its bearish strength, now aiming to regain the upside within positive territory as the RSI turned flat around 50, offering a short-term neutral stance. As mentioned in previous updates, the immediate support comes at 1.1770, the 50% retracement of the same rally, and where it bottomed on Thursday, being the level to break to confirm a new leg lower, targeting then the 1.1720/30 region. The 1.1820/30 price zone, on the other hand, is the immediate resistance, followed by the 1.1860 price zone.

Support levels: 1.1770 1.1720 1.1690

Resistance levels: 1.1840 1.1880 1.1920

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.