EUR/USD downside pressure intact – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted the pair’s downside sentiment stays unchanged in the near term.

Key Quotes

24-hour view: “The anticipated weakness exceeded our expectation as EUR dropped below the 1.1780 support to hit a low of 1.1761. The subsequent strong bounce from the low suggests that 1.1761 is a short-term bottom. From here, EUR is expected to consolidate its recent sharp drop and trade sideways. Expected range for today, 1.1785/1.1855”.

Next 1-3 weeks: “We highlighted yesterday (16 May, 1.1830) that the “immediate pressure is on the downside” and added, “further weakness to 1.1750 would not be surprising”. EUR subsequently hit a low of 1.1761 before rebounding. The price action reinforces our view wherein while the near-term outlook for EUR is negative, any weakness is unlikely to have enough momentum to move below last December’s low of 1.1715 (1.1750 is already a solid support). On the upside, only a move back above the ‘key resistance’ at 1.1900 (level adjusted lower from 1.1940) would indicate that the current downward pressure has eased”.

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 holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.