EUR/USD still weak, in a range below 1.1800

Euro remain under pressure amid political uncertainty in Italy.
EUR/USD recovery was short-lived and is back near monthly lows.

Matías Salord FXStreet

The EUR/USD pair is trading in a range between 1.1765 and 1.1790, modestly lower for the day. The greenback gained momentum across the board near the end of the European session and erased losses. The DXY bounced from 93.15 back to 93.50 as US yields rose modestly.

The euro is also losing ground versus the Swiss franc and the Pound affected by Italian politics. Today tensions eased a bit: Italy’s stock index MIB rose modestly and yields pulled back from monthly highs but the European currency remains under pressure. EUR/CHF dropped to the lowest level in two months. Since the beginning of the month, it has fallen more than 250 pips. The relief came after the coalition between the anti-establishment Five Star Movement and League chose Giuseppe Conte as the candidate for prime minister.

Despite the relief, the EUR/USD remains unable to move away from multi-month lows. Earlier today it reached at 1.1828, the highest level since Thursday but then turned lower. The retreat from the top found support above 1.1765.

EUR/USD Levels to watch

The decline from daily highs signals that EUR/USD is not ready yet for a sustainable recovery. A consolidation below 1.1750 would add bearish pressure exposing May lows at 1.1715.

To the upside, immediate resistance is seen at 1.1790/1.1800, above the next resistance could be located at 1.1825 and then comes 1.1845/50 with a break higher signaling more gains ahead.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.