Investors cautious amid risks global risks

John Benjamin Orbex

The markets were seen trading on the back foot on Friday amid an array of rising global political risks. Investors were seen facing risks from the proposed U.S. and North Korea talks that President Trump called off.While in Italy, the newly formed populist government brought a more cautious note to the markets.The Corruption scandal from Spain was another factor that added to the common currency’s woes.

On the economic front, data on Friday saw the release of second revised GDP estimates. Data showed that the UK's economy grew at a pace of 0.1% in the first quarter, unchanged from the preliminary estimates. In the U.S. core durable goods orders rose 0.9% on the month beating estimates of a 0.5% increase. However, headline durable goods orders fell 1.7% on the month which was more than expected.

Looking ahead, the economic calendar is quiet today with the UK and the U.S. markets closed. Data from the Eurozone is sparse and we expect trading to also reflect the slow day in the markets.

With the upcoming NFP this Friday most currency pairs will be affected! Register for our LIVE non-farm payrolls webinar, this Friday, to experience technical analysis first hand!

EURUSD intra-day analysis

EURUSD (1.1718): The EURUSD currency pair extended strong losses on Friday as price action broke past the 1.1672 handle. However, with price closing around 1.1649, a rebound off this level is expected. In the near term, we expect the EURUSD to consolidate within 1.1730 and 1.1650 region ahead of a potential retracement in prices. Further declines in price action could send the common currency lower, targeting 1.1500 handle.On the 4-hour chart, price action continues to post steep losses which could trigger a strong pullback in the near term. Above 1.1730, the EURUSD could be seen testing the resistance level at 1.1846 - 1.1824

USDJPY intra-day analysis

USDJPY (109.40): The Japanese yen was seen strengthening sharply on Friday with price action turning quite volatile below the 109.57 - 109.43 handle of resistance. This consolidation is expected to continue. However, an upside breakout out could trigger a possible retracement toward the 110.85 level of resistance. To the downside, the USDJPY could be seen targeting the lower support at 108.90 price level where support is most likely to be established.

XAUUSD intra-day analysis

XAUUSD (1298.75): Gold prices stalled the gains after price action hit the resistance level of 1304 - 1301 level. The consolidation at this place will see gold prices retesting the breached support level of resistance. A lower close off this level could trigger the downtrend being resumed. However, with the bottom being formed at 1282 handle, we expect to see the declines limited to this level. In the near term, gold prices could be seen posting a sideways movement unless we see a clear breakout above 1304 - 1301 resistance level. In this case, gold prices could be attempting to test the resistance at 1325.

Author

John Benjamin

Orbex

John is a market analyst for Orbex Ltd. and is a forex and equities trader having been involved in trading since late 2009. John makes use of a mix of technical and fundamental analysis and inter-market relationships.

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.