EUR/USD is now seen within 1.0390-1.0560 – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, EUR/USD has now likely moved into a consolidative phase.

Key Quotes

24-hour view: “We expected ‘further EUR strength’ yesterday. However, EUR plummeted to a low of 1.0458. The oversold decline has scope to extend to 1.0440 even though a sustained decline below this level is unlikely. The next support at 1.0390 is unlikely to come into the picture. Resistance is at 1.0500 followed by 1.0530.”

Next 1-3 weeks: “Yesterday (18 May, spot at 1.0545), we held the view that the corrective rebound in EUR could extend to 1.0600. We did not expect the subsequent sharp drop to a low of 1.0458 during NY session. While our ‘strong support’ level at 1.0440 is not breached, the build-up in momentum has fizzled out quickly. The sharp but short-lived swings the past couple of days have resulted in a mixed outlook and EUR could trade within a range of 1.0390/1.0560 for now.”

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 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.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

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.