EUR/USD Price Analysis: EUR/USD spikes as traders react to rate cut from the Fed

EUR/USD trades 0.35% higher on the session as traders react to fundamental developments.
There is another resistance level close by that the bulls could look to target.

Rajan Dhall, MSTA FX Daily

EUR/USD 4-Hour Chart

EUR/USD has spiked around 50 pips or so after the Fed announced a 50 bps rate cut in response to the coronavirus outbreak.

Currently, the pair is struggling at the previous wave high of 1.1185.

If this level breaks, the bulls could look to target the next resistance zone at1.1239.

It seems that the market has been right in pricing in the rate cut since Jerome Powell gave an interview last Friday.

EUR/USD Daily Chart

On the daily chart, the pair has now clearly broken through the trendline and could be headed for higher levels.

The rate cuts could have been priced in, so there may not be a frantic push higher.

If the price does hold above the trendline, the next resistance higher past the one mentioned above could be nearer to 1.1347.

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.