EURO STOXX 50 Rebound risks

Steve Miley, MSTA MarketChartist

A Monday setback for the pan-European index, the EURO STOXX 50, but holding at new 3511 support above our 3504 /00 area, to sustain a positive tone from Thursday’s erratic prince action that saw a rebound from above this area and from Friday’s advance, to leave risks higher again Tuesday.

The latter August push above key 3403 secured an intermediate-term base for an intermediate-term shift to bullish.

For Today:

We see an upside bias for 3537; break here aims towards 3556/58, maybe 3569.
But below 3511 targets 3504/00 and aims for 3489.

Intermediate-term Outlook - Upside Risks: We see an upside risk for 3569 and 3656

What Changes This? Below 3443 shifts the intermediate-term outlook back to neutral; through 3404 is needed for an intermediate-term bear theme.

You can see more reports on European equity averages and Forex from Steve Miley on FXExplained.co.uk

Author

Steve Miley, MSTA

MarketChartist

Steve Miley, the Market Chartist brings 22 years of financial market experience with him. He spent 2009-2012 as a Director of the FX Technical Analysis Research Strategy team at Credit Suisse and was previously at Merrill Lynch for 15 years.

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.