EUR/USD is now focused on 1.1200 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted a break below the 1.1200 handle could trigger a quick move lower.

Key Quotes

24-hour view: “While our anticipation for a break of the major 1.1295/00 support was correct, the extent and pace of the subsequent decline came as a surprise. We were of the view that any weakness could be limited to 1.1270 but EUR plunged and even managed to edge below the next major support at 1.1220 (low of 1.1213). The down-move is deep in oversold territory now but there is no sign of stabilization just yet and EUR could try to crack 1.1200 from here (next support is at 1.1165). Only a move back above 1.1270 would indicate that the current weakness has stabilized (minor resistance is at 1.1245)”.

Next 1-3 weeks: “While we have held the view that there is “scope for EUR to retest the major 1.1300 support” since last Friday (09 Nov, spot at 1.1365), the manner of which it crashed below this level yesterday (12 Nov) came as a surprise. We indicated yesterday (12 Nov, spot at 1.1325) a “NY closing below this major support would suggest EUR could weaken further to the next support at 1.1220” and this scenario is supposed to take days to evolve and not hours (EUR hit a low of 1.1213 during late NY hours). To put it in perspective, over the past 3 trading days, EUR has lost a whopping -1.81%. The last time we saw a decline of similar magnitude was back in June when the political upheavals in Italy were at its peak. From here, we are seeing strong support at 1.1200 but a clear break of this level could open up the way for further rapid drop to 1.1130, 1.1100. On the upside, the ‘key resistance’ at 1.1410 has moved sharply lower to 1.1350”.

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 remains cautious near 1.1760 ahead of US data

EUR/USD trades marginally on the defensive at the end of the week, hovering around the 1.1770-1.1760 band against the backdrop of an equally humble advance in the US Dollar. Meanwhile, investors gear up for the release of key US data later in the day, including PCE and GDP figures.

GBP/USD looks slightly bid near 1.3480, focus on US docket

The British Pound gathers some fresh steam on Friday, prompting GBP/USD to reverse four consecutive days of losses and revisit the 1.3480 zone. Cable’s decent bounce comes on the back of modest gains in the Greenback prior to the release of significant US data.

Gold extends the recovery past $5,000/oz, looks at US data

Gold prices advance for the third straight day on Friday, reaching new multi-day highs just north of the key $5,000 mark per troy ounce. The continuation of the precious metal’s uptick follows steady geopolitical effervescence in the Middle East, while traders eagerly await key US data releases.

US GDP growth expected to slow down significantly in Q4 after stellar Q3

The United States Bureau of Economic Analysis will publish the first preliminary estimate of the fourth-quarter Gross Domestic Product at 13:30 GMT. Analysts forecast the US economy to have expanded at a 3% annualized rate, slowing down from the 4.4% growth posted in the previous quarter.

Week ahead – Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.