EUR/USD targets the June and July highs at 1.1374/1.1422 – Commerzbank

FXStreet Team FXStreet

EUR/USD is posting small gains on Tuesday as the pair heads towards the 1.1374 July high and the June peak at 1.1422, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

Key quotes

“EUR/USD is heading back up towards its current July high at 1.1374, above which still beckons the June peak at 1.1422. It will remain in play while the cross remains above the two month support line at 1.1278 and, more importantly, above the 1.1168 June 22 low. Immediate upside pressure should be maintained above Friday’s low at 1.1255.”

“The 1.1422 June high, together with the March high at 1.1495, represents quite formidable resistance which we would expect to cap at first. However, a break higher is eventually favoured and would target the 2019 high at 1.1570, then 1.1815/22, the 61.8% Fibonacci retracement of the move down from the 2018 peak and the September 2018 high.”

Author

FXStreet Team

FXStreet

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold clings to gains as US-Iran conflict continues to underpin safe-haven assets

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar could keep the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.