EUR/USD aims to complete a full retracement to 1.2349

FXStreet Team FXStreet

EUR/USD trades above 1.2200 for the first time since early January, as risk appetite woke up the shared currency. The pair is in recovery mode and heading towards 1.2349, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The US has just published January Durable Goods Orders, with the headline reading coming at 3.4%, vs the 1.1% expected. Initial Jobless Claims for the week ended February 17 improved to 730K, while the Q4 Gross Domestic Product was upwardly revised to 4.1% as expected.”

“The near-term picture is bullish, as the 4-hour chart shows that EUR/USD accelerated north above all of its moving averages. The pair is also trading well above the 23.6% retracement of its November/January rally, aiming to complete a full retracement to 1.2349.”

“Technical indicators have partially lost their bullish strength, but hold near their daily highs and well into positive levels, keeping the risk skewed to the upside.”

Author

FXStreet Team

FXStreet

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.