EUR/USD could extend its slump to 1.1970

FXStreet Team FXStreet

The EUR/USD pair has bottomed for the day at 1.2069, still holding above a major support level at 1.2060, the 38.2% retracement of its November/January rally, below which the bearish case is set to strengthen, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The shared currency fell despite better-than-expected data. The final version of the European Markit Manufacturing PMIs were upwardly revised, with the German index up to 57.1 from 57 and the Union’s index printing at 54.8. German Retail Sales, however, fell 9.6% MoM in December, much worse than anticipated. The American session will bring the January Manufacturing PMI for the US and the official ISM index, this last, foreseen at 60 from 60.7 in December.”

“The 4-hour chart shows that the risk is skewed to the downside, as the pair is developing below firmly bearish 20 and 100 SMAs. Technical indicators turned south, heading lower within negative levels.”

“A steeper decline could be expected on a break below the 1.2060 Fibonacci support, with investors eyeing an extension towards 1.1970.”

Author

FXStreet Team

FXStreet

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 buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

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.