EUR/USD to face stubborn resistance around 1.1715

FXStreet Team FXStreet

The EUR/USD pair retook the 1.1700 during European trading hours, extending its corrective advance, as bulls are in the lead ahead of US critical events with a critical Fibonacci resistance level emerging at 1.1712, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The risk-on sentiment finds support in renewed hopes of a US coronavirus aid-package, and increased chances of a Brexit trade deal. On a down note, the UK and Germany, among other European countries, are studying more restrictions to contain coronavirus contagions.”

“The EU published the September Economic Sentiment Indicator, which improved to 91.1 from 87.5 in the previous month. Germany released the preliminary estimate of September inflation, which was worse than anticipated, printing at -0.2% YoY. As for the US, the country has just published the August Goods Trade Balance, which showed that the deficit was of $-82.94B, worse than the previous $-80.11B. Later today, the focus will be on the US CB Consumer Confidence and several Fed’s speakers, ahead of the first US presidential debate.”

“From a technical point of view, the risk is skewed to the upside, as, in the 4-hour chart, technical indicators advance within positive levels. Even further, the 20 SMA has lost its bearish strength below the current level, although the 100 SMA maintains its bearish slope around 1.1780.”

“An advance beyond the daily high of 1.1714 should favor an extension towards the mentioned 1.1780 price zone, mainly if the sentiment improves during US trading hours.”

Author

FXStreet Team

FXStreet

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.