EUR/USD turns negative near 1.1760, Draghi eyed

Dhwani Mehta FXStreet

Having peaked near 1.1780 levels in the Asian trades, the EUR/USD pair gradually extended lower, now flirting with daily lows struck at 1.1759 last minutes.

EUR/USD trades below 20-DMA at 1.1779

The latest leg down in the spot is mainly driven by resurgent USD demand against its main competitors, tracking the renewed strength seen in Treasury yields across the time horizon, as upbeat US fundamentals continue to back the case for a Dec Fed rate rise. Meanwhile, Trump’s commitment on the tax overhaul plan also adds to the buoyant tone seen around the buck.

Trump: Want tax reform "by Christmas"

From the short-term perspective, any upside in the EUR/USD pair is likely to be short-lived until the Catalan crisis gets resolved, provided Catalonia’s President Puigdemont clarifies whether he wants to declare independence or not until the deadline ending tomorrow.

Moreover, downbeat German ZEW surveys and unimpressive Eurozone final CPI figures also add to the weight on the Euro. German Oct ZEW economic sentiment improves slightly, but misses estimates

Markets now look forward to the ECB speaks due today, with President Draghi expected to speak on regulatory reforms, while speeches from ECB’s Praet and Coeure will also be closely heard ahead of the Fedspeaks and US housing data due later on Wednesday.

EUR/USD Technical View

Haresh Menghani, Analyst at FXStreet notes: “With short-term technical indicators holding in negative territory, the pair remains poised to head towards testing the 1.1700 mark. Weakness below the mentioned handle might continue to find strong support near the 1.1675-70 horizontal zone.”

“On the upside, any recovery attempts might now confront fresh supply near the 1.1800 handle. Even if the pair manages to clear this immediate barrier, any further up-move should now be capped at a short-term descending trend-line resistance, currently near the 1.1830 region, also coinciding with 38.2% Fibonacci retracement level of 1.2092-1.1669 recent slide,” Haresh adds.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.