EUR/USD: Continuing next leg up, looking for 1.2535

EUR/USD trading quietly after gaining on Wednesday.
US inflation dragging down the Greenback a key factor.

Joshua Gibson FXStreet

The Euro finished Wednesday closing higher against the US Dollar for the third day in a row; EUR/USD is currently trading close to 1.2460 ahead of European markets, flat in Asia with China's markets closed for Chinese Spring Festival.

The uptick in inflation, seen in the better-than-expected CPI data from the US yesterday, is decidedly unkind to the Greenback. As inflation continues to pick up steam in the American economy, the Euro can look forward to more gains against the USD, following double-digit gains in EUR/USD through 2017. As inflation begins to be a drag on the US Dollar and a boost to the Euro, EUR/USD is on pace to continue gaining through this year as well, provided the balance between market-wide risk aversion and USD-bearish fundamentals remains intact.

No major data remains this week for the pair, so market risk sentiment will be expected to take over choosing a direction for the pair from one session to the next, with risk appetite cooled today following early volatility in Asia trading.

EUR/USD Technicals

The pair logged high volatility yesterday, and the high/low marks going forward today sit at 1.2465 and 1.2275 respectively, while H4 charts show the pair gearing up to make a new high following the pullback last week to 1.2205. With Daily candles once again closing further away fro mthe 34 EMA, and trading well above the 200-day SMA at 1.1735, the next challenge for EUR/USD bulls will be to push the pair over 1.2537 to send EUR/USD trading at three-year highs, while shortselling will run into long-term support from 1.2092 to 1.2033.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.