EUR/USD technical analysis: Rises to 200-hour MA as US yields sink

EUR/USD has jumped to the 200-hour MA hurdle in Asia.
With US yields sinking, the pair may take out the MA resistance.

Omkar Godbole FXStreet Contributor

The weakness in the US treasury yields and the resulting broad-based US Dollar sell-off is boding well for EUR/USD.

As of writing, the pair is trading at 1.1260, representing 0.33% gains on the day, having tested the 200-hour moving average (MA) hurdle of 1.1266 soon before press time.

The US Federal Reserve stood pat on Wednesday but signaled possible rate cuts of as much as half a percentage point over the next six months.

As a result, the US treasury yields are fast long ground. The 10-year yield has dropped below 2 percent for the first time since November 2016 and the 30-year yield has printed lows below 2.5% for the first time October 2016.

The slide in the treasury yields and rising odds of Fed rate cuts in September and December could continue to weigh over the US Dollar during the day ahead. The EUR/USD pair could break above the 200-hour MA and challenge the psychological hurdle of 1.13.

That said, the outlook as per the daily chart would turn bullish only after the pair finds acceptance above the recent high of 1.1348.

Hourly chart

Trend: intraday bullish

Technical levels

1. R3 1.1326
2. R2 1.129
3. R1 1.1258
PP 1.1222
1. S1 1.119
2. S2 1.1154
3. S3 1.1122

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.