EUR/USD back into tiny ranges post FOMC

EUR/USD bulls were unable to break the 1.2400 level.
EUR/USD will most likely need a strong catalyst to break above 1.2500.

Flavio Tosti Independent Analyst

The EUR/USD is trading at around 1.2310, down 0.20% on the day as market participants digest the news from the FOMC meeting which took place on Wednesday.

EUR/USD daily chart:

The FOMC meeting didn’t provide a clear direction for the EUR/USD. While bulls took the upper hand on Wednesday after the FOMC meeting, they couldn't break the 1.2400 resistance. The single currency is trading above both its 100 and 200-period simple moving average so the trend is still basically in place. However, the consolidation has been taking place since mid-January of this year with the market now trading between the 1.2200-1.2400 range. The market will likely need a strong reason to make a clear break above the 1.2500 multi-year pivot level. For example, the ECB might have to over-deliver or the Fed disappoint greatly, or some political conjunction would have to enter into play, but it is likely that some catalysts will be strong enough to break 1.2500. Neither the RSI nor the MACD indicate that a bull continuation is underway as of now.

EUR/USD 15-minute chart:

The EUR/USD found some support at the 1.2300 figure, helped by the 200 SMA. Both the RSI and the MACD are showing some positive divergences. Traders are likely expecting a little bounce here with the possibility to reach 1.2340 previous supply zone. Further resistance is seen at 1.2370 Asia high and finally at 1.2390 which is the high of the day. On the flip side, if the bulls fail, support is seen at 1.2270 previous bull base and at 1.2240 Wednesday´s low.

Author

Flavio Tosti

Independent Analyst

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.