EUR/USD: Heavy within range – OCBC

FXStreet Team FXStreet

Terence Wu, an FX strategist at OCBC Bank, remains negative on the euro against the US dollar.

Key quotes

“While short-term implied valuations for the EUR/USD stayed elevated, the pair remained on a heavy tone, widening the gap between spot and implied valuations.”

“With the USD in ascendant again, expect the EUR to flex against the 1.0770/80 support. This level will need to be breached for the pair to see further downside.”

“Immediate resistance at 1.0850/60.”

Author

FXStreet Team

FXStreet

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.