EUR/USD spikes to fresh session tops, comfortable above 1.18 handle

Haresh Menghani FXStreet

• Weaker USD offset mixed German IFO surveys and lifts back above 100-DMA.
• Diverging comments by Fed’s Kashkari and Kaplan does little to support USD.

The EUR/USD pair quickly reversed the early European session dip to sub-1.1800 level and jumped to fresh session tops in the past hour.

With investors looking past today's mixed German IFO business surveys, persistent US Dollar selling bias helped the pair to build on previous session's recovery move and jump back above 100-day SMA barrier.

The USD lost some more ground following some dovish comments by Minneapolis Fed president Neel Kashkari, which to some extent got negated by Dallas Fed president Robert Kaplan's signal for three rate hikes in 2018 and kept a lid on further gains.

Currently trading around the 1.1825-30 region, traders would now take cues from today's US housing market data, which along with a key Senate vote on a sweeping tax overhaul bill would drive the pair through NY trading session and possibly in the near-term.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, "the range that has been limiting price action these last few weeks is determinate by the lows in the 1.1715 region, and sellers aligned at 1.1870. A break of any of such extremes is required to confirm some follow-through during the following sessions."

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD stays depressed near 1.1850 ahead of German ZEW

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined ahead of the German ZEW sentiment survey.

GBP/USD drops below 1.3600 after weak UK jobs report

GBP/USD is seeing a fresh selling wave, giving up the 1.3600 level in Tuesday's European trading. The United Kingdom employment data showed worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative is weighing heavily on the Pound Sterling.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Pi Network rallies ahead of its first anniversary

Pi Network trades above $0.1800 at the time of writing on Tuesday, recording nearly 5% gains so far. On-chain data indicate that large wallet investors, commonly known as whales, have accumulated approximately 4 million PI tokens over the last 24 hours.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.