EUR/USD: Poised to reach the 55-DMA at 1.2050 – Commerzbank

FXStreet Team FXStreet

The euro continues to drop lower and the EUR/USD pair is set to test the 55-day moving average but Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the dip to extend towards the September high of 1.2014.

See – EUR/USD: The next stop is at 1.2050 – OCBC

Key quotes

“EUR/USD remains under pressure near term and is poised to encounter the 55-day ma at 1.2050, we look for losses to extend to 1.2014 the September high and even the 1.1969 2020-2021 uptrend, which will ideally hold. Intraday rallies should struggle around 1.2160.”

“Assuming that the uptrend (1.1969) and 23.6% retracement of the move up since March 2020 (1.1945) holds; medium-term the market continues to track higher whilst targeting the 1.2556 2018 high and 1.2624, the 200-month moving average, which remains our longer-term target.”

“Loss of 1.1645 will imply a deeper sell-off to the 1.1612/02 support, this is the 38.2% retracement and the September and November lows.”

Author

FXStreet Team

FXStreet

EUR/USD edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold benefits from a retreating USD; reduced Fed rate cut bets cap gains

Gold attracts some buyers for the second consecutive day on Thursday amid a modest US Dollar pullback from an over three-month high, though it remains below the $5,200 mark. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.