EUR/USD: The key barrier in the 1.19 area keeps limiting extra gains

FXStreet Team FXStreet

EUR/USD extends the consolidative fashion on Friday as the pair once again prolongs the rangebound trade at the end of the week and always below the 1.19 mark, which has become a solid obstacle for any serious bullish attempt in past sessions, FXStreet’s Pablo Piovano reports.

Key quotes

“Investors continue to look past the pandemic and favour the ‘glass half-full’ vision, always on the back of rising hopes of an effective vaccine in the short-term horizon, which at the same time reignite the idea of a ‘V’-shaped recovery in the euro area and the rest of the world.”

“Dark clouds for the single currency have started to emerge on the horizon, however, pari passu with the potential re-emergence of political effervescence in the Old Continent with the EU Recovery Fund and Hungarian and Polish vetoes in the centre of the debate.”

“The inability of surpassing the 1.19 area in the near-term carries the potential to motivate sellers to return to the market and sponsor a new corrective downside. In this scenario, initial support emerges at last week’s lows in the 1.1750 region ahead of the contention area near 1.1700, where coincide the 100-day SMA and a Fibo retracement (of the 2017-2018 rally). The loss of this level could pave the way for a deeper pullback to the monthly lows near 1.16 the figure (November 4).”

“On the upside, 1.19 remains a tough nut to crack for EUR-bulls. If and when this level is cleared, then the attention should shift to the monthly peaks around 1.1920 (November 9) ahead of the August’s top at 1.1965.”

Author

FXStreet Team

FXStreet

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.