Euro shows temporary stability

Andrey Goilov RoboForex

The Euro's recent stabilization against the US dollar, now hovering around 1.0766, may be short-lived. Market eyes are turning towards the upcoming two-day meeting of the US Federal Reserve, starting Tuesday and concluding late Wednesday. Key attention will be on the interest rate decision, widely anticipated to hold steady at 5.50% annually.

Investor focus is keenly set on the Fed's potential moves for February and March, with speculation rife about a possible rate reduction by the end of Q1. Any hints or signals in this regard will be crucial for market dynamics.

Monday's calendar is light, with no major statistics due from either the Eurozone or the US. The real action is expected to start Tuesday.

EUR/USD technical analysis

On the EUR/USD H4 chart, a decline impulse to 1.0804 has been observed. Currently, the market has formed a consolidation range around it. A downward wave to 1.0704 could develop today. This practically implies a breakout from the range downwards, opening the potential for further trend development towards 1.0594. This is the first target. Once the quotes reach it, a correction to 1.0800 might start, followed by a decline to 1.0400. This is a local target. Technically, this scenario is confirmed by the MACD, where its signal line is below zero, pointing strictly downwards.

On the EUR/USD H1 chart, the quotes have rebounded from 1.0805. A structure of a declining wave to 1.0705 is forming. After reaching this level, a correction link to 1.0760 cannot be ruled out (a test from below). Next, a decline to 1.0655 could follow. This is a local target. Technically, this scenario is confirmed by the Stochastic oscillator, with its signal line below 50 and a potential drop to 20.

Author

Andrey Goilov

RoboForex

Higher economic education. Andrey Goilov has been working on the Forex market since 2005. A financial analyst and successful trader. Preference in trading is highly volatile instruments.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.