EUR/USD depressed around 1.2340, ignores mixed ZEW

German ZEW came in mixed for the current month.
Economic Sentiment in the euro area beats consensus at 29.3.
ECB minutes on Thursday next big event in the region.

Pablo Piovano FXStreet

The offered note stays the same around the single currency on Tuesday and is now forcing EUR/USD to move further south to fresh session lows in the 1.2340 region.

EUR/USD offered on ZEW, looks to ECB

Spot keeps the negative performance during the first half of the week, this time under extra pressure after the German ZEW Survey showed Current Conditions down to 92.3 while Economic Sentiment came in above estimates at 17.8, albeit lower than January’s 20.4.

Following suit, Economic Sentiment in the euro area surpassed consensus at 29.3 although eased from the previous reading at 31.8.

Furthermore, ZEW sources noted that inflation expectations in both the euro area and Germany have commenced to rise, while the German economy is expected to improve in the medium term.

Nothing else data wise from Euroland today apart from the EcoFin meeting, which is expected to yield nothing relevant, as per usual.

Across the pond, nothing scheduled for today while investors should start to shift their attention to the FOMC minutes, to be published tomorrow.

EUR/USD levels to watch

At the moment, the pair is losing 0.54% at 1.2340 facing immediate contention at 1.2276 (low Feb.14) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a breakout of 1.2757 (2018 high Feb.16) would target 1.2598 (61.8% Fibo of the 2014-2017 drop) en route to 1.2886 (high Oct.15 2014).

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.

AUD/USD: Next upside target comes at 0.7000

AUD/USD has advanced further, clinching its third consecutive day of gains and trading at shouting distance from the key 0.7000 threshold on Tuesday. The widespread improved sentiment in the risk complex helped the Aussie maintain its upside momentum, while the fresh selling impulse in the Greenback also contributed to the move.

USD/JPY rises back above 158.00 despite hawkish BoJ outlook

USD/JPY rises back above 158.00 in the early European morning on Tuesday. The pair strengthens as the Japanese Yen fails to find any inspiration from hawkish BoJ expectations and looming intervention risks. Meanwhile, geopolitical uncertainty and elevated US bond yields keep the US Dollar near its YTD high despite receding October Fed hike bets. This, in turn, helps the pair stay supported.

Gold stays firm; looks at $4,200

Gold builds on Monday’s marginal bounce, although it struggles to reclaim the key $4,200 mark per troy ounce so far on Tuesday. The yellow metal’s advance comes on the back of the fresh downside momentum in the US Dollar in tandem with retreating US Treasury yields across the curve.

Ethena Price Forecast: ENA corrects as Ether.Fi launches stablecoin on the protocol

Ethena (ENA) trades near $0.24000 on Tuesday amid growing technical weakness. The Ethereum Layer-2 token has shed some of its recent gains, which peaked at $0.2946 on September 27, reinforcing profit-taking and buyer exhaustion. An extended sell-off would bring ENA to test the psychological support at $0.2000 and key technical levels further down.

Japanese Yen nears 158.00: Two analysts agree it's bullish, and disagree on how far the breakout goes

The JPY is drifting near 158.00 against the USD ahead of a busy week of Japanese data and a still-unclear BoJ timetable. The two most recent FXStreet analyses agree on the direction, but they disagree on the target and the mechanism.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.