EUR/USD Price Analysis: Bears move in and eye a break of 1.0600

EUR/USD is stalling on the bid and the W-formation could play out for a move into the 1.0620s.
On the upside, we have 1.0700 as a key level where a measured move of -0.272% of the potential correction's range.

Ross J Burland FXStreet

As illustrated in the prior analysis, the price has moved into the target area, leaving a W-formation in its tracks. This is a reversion pattern whereby bulls would still be expected to move in at a discount from the neckline should there be a test of 1.0600 or there abouts.

EUR/USD prior analysis

This still marks 1.0600 as a key support area and 1.0520s below it as being the CPI take-off point.

EUR/USD update

The price is stalling on the bid and the W-formation could play out for a move into the 1.0620s as a first objective and then to test 1.0600 thereafter. 1.0580 and 1.0520/05 could be the last defence for a significant bearish correction for the weeks ahead and New Year.

On the upside, however, we have 1.0700 as a key level where a measured move of -0.272% of the potential correction's range to support meets the prior mid-summer resistance looking left. We have 1.0790 thereafter as the next level.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.