EUR/USD finds support near 1.13, remains on track to post modest daily gains

US Dollar Index stays in the negative territory below 97.
ECB's Praet says the ECB could change guidance.
Coming up: ZEW Economic Sentiment for Germany and the eurozone.

Eren Sengezer FXStreet

The EUR/USD pair took advantage of the broad-based USD weakness and started the week on a positive note to extend its rebound from the 4-month low that it touched last Friday. However, the lack of fundamental drivers on Monday suggests that the pair's action today is most likely a technical correction. As of writing, the pair was up 0.15% on the day at 1.1311.

Dovish comments from Fed officials last Friday forced the greenback to weaken against its rivals and dragged the US Dollar Index below the 97 mark. Atlanta Fed President Raphael Bostic said that he was favouring one rate hike both in 2019 and 2020 and San Francisco Fed President Daly argued that if the economy were to grow 2% with a 1.9% inflation rate, there wouldn't be a need to hike rates this year. With American traders enjoying a long weekend on Monday, the US Dollar Index, which was last seen down 0.15% on the day at 96.80, struggled to make a meaningful recovery and extended its losses.

Meanwhile, the ECB's chief economist Peter Praet earlier in the session said that the ECB could adopt rate guidance if the European economy were to slow sharply. "Biggest problem by far is political uncertainties persisting for so long, related to protectionism, Brexit," Praet added. The ZEW on Tuesday is scheduled to publish its Economic Sentiment data for Germany and the eurozone. Analysts expect the index for the eurozone to improve to -18.2 in February from -20.9 in January. A disappointing reading is likely to weigh on the shared currency and make the pair's recovery to gather momentum.

Technical outlook by FXStreet Chief Analyst Valeria Bednarik

The pair set a daily low of 1.1294, flirting with the 23.6% retracement of the 1.1513/1.1233 decline at 1.1300, quickly bouncing from the level, although the recovery stalled below the 38.2% retracement of the same decline at 1.1340, the immediate resistance. In the 4 hours chart, the pair is trading below its 20 SMA while below the larger ones, while technical indicators hold within positive ground, although with uneven strength. The positive momentum should increase on a break above the mentioned 1.1340 Fibonacci resistance, something that has little chances to happen until Tuesday.

Support levels: 1.1300 1.1260 1.1215

Resistance levels: 1.1340 1.1380 1.1425

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD recovers above 1.1600 as focus shifts to US data

EUR/USD stages a modest rebound and trades in positive territory above 1.1600 in the European session on Wednesday. Improving risk sentiment makes it difficult for the US Dollar to preserve its strength and helps the pair edge higher as focus shifts to key US data releases.

GBP/USD climbs above 1.3350 on improving risk mood

GBP/USD gains traction and advances toward 1.3400 on Wednesday. Although there are no headlines pointing to a de-escalation in the Middle East conflict, the modest recovery seen in US stock index futures limit the USD's gains and help the pair hold its ground.

Gold rebounds toward $5,200 as USD retreats

Gold maintains its offered tone through European session on Wednesday and climbs to the $5,200 region. The downward correction seen in the US Dollar and the ongoing crsis in the Middle East seem to be allowing XAU/USD to preserve its recovery momentum.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.