EUR/USD faces strong support around 1.1580 – UOB

Pablo Piovano FXStreet

EUR/USD faces further downside, but it is unlikely to test the key support around 1.1580, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR dropped to a low of 1.1638 last Friday before closing on a soft note at 1.1647 (-0.23%). The decline is oversold but is not showing sign of stabilization just yet. From here, EUR could dip below the major support at 1.1610 but for today, the next support at 1.1580 is likely out of reach. On the upside, a move above 1.1695 (minor resistance at 1.1670) would indicate the current weakness has stabilized.”

Next 1-3 weeks: “In our latest update from last Thursday (29 Oct, spot at 1.1745), we indicated that ‘the improvement in downward momentum suggests the risk remains on the downside but EUR has to close below 1.1685 before a more sustained decline can be expected’. We added, ‘the next support is at 1.1610’. EUR subsequently closed below 1.1685 and dropped to a low of 1.1638 last Friday. From here, a break of 1.1610 would not be surprising but the next level at 1.1580 is a solid support and may not be easy to crack. All in, the current negative phase is deemed as intact as long as EUR does not move above 1.1745 (‘strong resistance’ level previously at 1.1835).”

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 lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.