EUR/USD could slip back below 1.1110 – UOB

Pablo Piovano FXStreet

According to FX Strategists at UOB Group, the correction in EUR/USD could extend to the 1.1110 region in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday, the recovery in EUR ‘lacks momentum’ but were of the view that ‘there is room for EUR to edge higher’. Instead of edging higher, EUR surrendered all of Monday’s gain as it dropped to an overnight low of 1.1131. While downward momentum has not improved by much, the risk is on the downside and EUR could test the strong 1.1110 support (the overnight low is acting as a minor support). At this stage, the prospect for a sustained decline below this level is not high. Resistance is at 1.1170 followed by 1.1195.”

Next 1-3 weeks: “As highlighted, any weakness is viewed as part of a broad 1.1110/1.1230 range. However, downward momentum is beginning to pick up and the prospect for a clear break of 1.1110 has increased. Looking ahead, a breach of 1.1110 would suggest EUR trade towards the next support at 1.1065. Overall, the current mild downward pressure is expected to increase unless EUR can move back above 1.1195 within these few days.”

In the longer run “EUR/USD could trade sideways but the top of the range at 1.1200 appears to be more vulnerable.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.