EUR/USD: Recovery mode intact near 1.1935 post-Eurozone Sentix

Firmer USD and a drop in Eurozone Sentix to keep recovery short-lived.
Fedspeaks in focus amid lack of fresh catalysts from the US docket.

FXStreet Team FXStreet

The EUR/USD pair makes a tepid recovery attempt from 1.1922 lows, as markets appear to have ignored the Eurozone Sentix Investor Confidence numbers, which showed a dip in the investors’ confidence to 19.2 for May versus 21.0 expected.

However, the recovery appears limited amid persisting US dollar strength across the board, as the USD bulls continue to cheer stronger US fundamentals, with the latest US jobs data having added to the signs of a strengthening US economy while the Fed remains on track to hike the interest rates in June.

Looking ahead, the spot is likely to maintain its range play on the 1.19 handle should the bulls continue to guard the last. A breach of the multi-month lows of 1.1911 levels could pave the way for further declines towards the December lows of 1.1718, as traders await the US CPI report due later this week.

EUR/USD levels to watch

According to Slobodan Drvenica at Windsor Brokers, “Negative near-term outlook is expected to persist while 200SMA caps and keep in focus target at 1.1910 (Friday’s spike low / new 2018 low), with stronger bearish acceleration capable of traveling towards 1.1790 (Fibo 76.4% of 1.1553/1.2555). An eventual close below 1.1936 is seen as an initial requirement for bearish continuation.

Res: 1.1978; 1.2000; 1.2016; 1.2053.

Sup: 1.1910; 1.1893; 1.1854; 1.1816.”

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold sellers remain in control while below 21-day SMA

Gold is falling for the third straight day on Tuesday, having run into sellers on several occasions at the $4,200 level. The bullion awaits a clear trading impetus amid uncertainty about the US Federal Reserve’s interest rate outlook and looming geopolitical risks.

Bitcoin profit-taking cools as spot demand stays weak, Glassnode says

Glassnode says Bitcoin (BTC) selling pressure has eased but spot demand stays weak near $82,000. Supply in profit fell to 68.2% as options expiry looms. Blockchain analytics firm Glassnode shared in a Monday report that Bitcoin selling pressure has eased, but spot market demand remains weak, leaving the cryptocurrency without a clear catalyst for recovery.

Markets now see no hike in October, but inflation is still a major concern

US inflation has returned to the spotlight after the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports showed a significant acceleration in price pressures. The data raised concerns that the Federal Reserve may need to maintain restrictive monetary policy for longer, pushing interest-rate expectations higher and putting pressure on stocks and gold.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.