EURUSD advances after strong German Q3 GDP; data from EU in focus

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro holds firm tone on Tuesday and rose to three-week high on bullish acceleration after upbeat German GDP data (Q3 GDP 0.8% vs 0.6% f/c/prev). Bullish signals were generated on advance through 20SMA (1.1674) and broken neckline (1.1685) for probes above 1.1700 handle towards 30SMA (1.1715) and 100SMA (1.1731).
Tuesday's calendar is full, with ECB President Draghi talking at 10:00GMT and a batch data from the Eurozone due at the same time.
German ZEW economic sentiment is forecasted to rise in November (20 f/c vs 17.6 in Oct); EU Q3 GDP is expected to stay unchanged at 2.5%; EU industrial production is forecasted to fall in September (-0.6% f/c vs 1.4% in Aug) while EU ZEW economic sentiment is forecasted at 29.3 in November vs 26.7 previous month.
Forecasted numbers look supportive overall and releases at/above consensus could send the single currency higher.
Lift above 100SMA target (1.1731) would open way towards 55SMA (1.1795) and daily cloud base (1.1815).
Rising hourly cloud (cloud is spanned between 1.1653 and 1.1636) and 10SMA (1.1636) continue to underpin the advance and violation of these supports would turn near-term structure negative.

Res: 1.1715; 1.1731; 1.1770; 1.1795
Sup: 1.1685; 1.1674; 1.1661; 1.1636

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 trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.