EUR/USD rebounds above 1.14, turns positive for the week

Broad USD weakness helps the pair recover weekly losses on Friday.
Ifo data shows that sentiment continues to deteriorate in Germany.
ECB recognizes the weakness of the recent data.

Eren Sengezer FXStreet

The EUR/USD pair, which fell to its lowest level in more than two months below 1.13 on Thursday after ECB President Draghi acknowledged the weaker growth momentum and increasing downside risks, staged a decisive recovery on Monday and gained nearly 100 pips on Friday. As of writing, the pair was trading at 1.1410, adding 0.9% on a daily basis. With today's upsurge, the pair turned positive for the week.

Earlier today, the data published by Germany's Ifo's Institue revealed that the headline German Business Climate Index fell to 99.1 in January from December's 101.0 reading and fell short of the analysts' estimate of 100.6. Moreover, the Current Economic Assessment Index edged down to 104.3 and the Expectations Index slumped to 94.2 to confirm the deteriorating sentiment in the euro area's biggest economy.

However, with the greenback failing to extend yesterday's rally and reversing its course on Friday, the pair shook off the negative impact of the disappointing Ifo report and posted decisive gains. The US Dollar Index in the early NA session slumped below the 96 mark for the first time in more than a week amid dovish Fed expectations and concerns over the ongoing government shutdown. At the moment, the index is down 0.7% on the day at 95.90.

Key Technical Levels

EUR/USD

Overview:
    Today Last Price: 1.141
    Today Daily change: 0.0102 pips
    Today Daily change %: 0.90%
    Today Daily Open: 1.1308
Trends:
    Daily SMA20: 1.142
    Daily SMA50: 1.139
    Daily SMA100: 1.1452
    Daily SMA200: 1.1584
Levels:
    Previous Daily High: 1.1393
    Previous Daily Low: 1.1289
    Previous Weekly High: 1.1491
    Previous Weekly Low: 1.1353
    Previous Monthly High: 1.1486
    Previous Monthly Low: 1.1269
    Daily Fibonacci 38.2%: 1.1329
    Daily Fibonacci 61.8%: 1.1353
    Daily Pivot Point S1: 1.1267
    Daily Pivot Point S2: 1.1227
    Daily Pivot Point S3: 1.1164
    Daily Pivot Point R1: 1.1371
    Daily Pivot Point R2: 1.1433
    Daily Pivot Point R3: 1.1474

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.

USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold rebounds to near $3,900 as Fed hike bets cap upside

Gold price edges at the start of a new week, reclaiming $3,900 during the Asian session and reversing a part of Friday's heavy losses to its lowest level since October 2025. The upside potential, however, seems limited as elevated oil prices and inflation concerns keep Fed rate hike bets firmly on the table.

Zcash rebounds as ZODL founder now supports ending community grants

Zcash (ZEC) shows signs of recovery on Monday, extending gains above $1,250 as the Zcash Open Development Lab (ZODL) founder, Josh Swihart, now supports the compromise proposal to end the 8% block reward share directed to Zcash Community Grants (ZCG).

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.