EUR/USD finds support once again near 1.0710, ECB in focus

Dhwani Mehta FXStreet

The EUR/USD pair oscillates back and forth in 20-pips narrow range so far this session, with the daily pivot located at 1.0734 still acting as a strong upside barrier.

EUR/USD back to test daily pivot?

Currently, EUR/USD now returns to the green zone to trade around 1.0725 levels, looking to re-test daily high reached previously at 1.0733. The main currency pair extends its range-play in Europe, with investors turning onto sidelines ahead of the main risk event for the euro this week, the ECB policy decision.

Moreover, lack-luster trading activity seen around the greenback across the board, also leaves the major directionless, although manages to keep 1.07 handle. Next of note for the major remains the US JOLTS job opening data due later in the NA session, with markets expecting virtually no reaction on the data release.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0798 (3-week highs). A break beyond the last, doors will open for a test of 1.0817 (Nov 15 high) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0700 (round number) below which 1.0685 (5-DMA) and 1.0657/37 (10 & 20-DMA) could be tested.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0628

38% Bullish
62% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0692

50% Bullish
33% Bearish
17% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.0662

45% Bullish
50% Bearish
5% Sideways

Bias Bearish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.