EUR/USD consolidates above 1.16, awaits fresh leads

EUR/USD is trading in a sideways manner above 1.16, is looking to re-enter pennant pattern.
Light economic calendar and the calm in the Italian bond markets is helping the EUR hold above 1.16.

Omkar Godbole FXStreet Contributor

The EUR/USD is holding above 1.16, despite having faced rejection at the pennant hurdle (lower end now acting as resistance) on Wednesday.

At press time, the pair is trading at 1.1615 and the lower end of the pennant is located at 1.1626.

The pennant breakdown and the sharp rise in the spread between the 10-year Italian bond yield and the 10-year German bund yield witnessed last week had put the bears in a commanding position.

However, the common currency has defied gravity this week, possibly due to the calm in the bond markets. For instance, the Italy-German yield spread now stands at 247 basis points vs Friday's high of 253 basis points.

As for today, the currency pair could continue to trade above 1.16 on lack of first tier data releases in the Eurozone and US. The absence of fresh news on Italy could keep the bond markets calm and the EUR better bid above 1.16.

If the Italy-German yield spread spikes, then the EUR will likely fall back below 1.16.

EUR/USD Technical Levels

Resistance: 1.1626 (pennant resistance), 1.1667 (50-day MA), 1.1747 (July 31 high)

Support: 1.1601 (session low), 1.1573 (previous day's low), 1.1530 (last week's low)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected.

Gold consolidates the rebound below $5,000, US data eyed

Gold price consolidates the previous rebound below $5,000 in the Asian session on Thursday. The precious metal recovered on Wednesday amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims, Pending Home Sales data, and the Fedspeak later on Thursday.

Bitcoin approaches a critical zone: Bear pennant projects $56,000

Based on the most recent analyses from February 2026, the short answer is that it is highly unlikely that Bitcoin will reach $100,000 this month.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.