EUR/USD: Watch out for 1.1321/00 key support – Goldman Sachs

Dhwani Mehta FXStreet

In their latest client note, the analysts at Goldman Sachs offer a detailed technical outlook on the EUR/USD pair, based on the Elliot waves analysis.

Key Quotes:

“1.1321 level is derived from an equality target taken off the Nov. 20th interim high. Meaning that if it holds support, there's a good chance the market turned back into its recent uptrend, extending its rally towards 1.1575-1.1587 at least; includes 61.8% retrace and an ABC target off the November low.

Alternatively, breaking ~1.13 increases the risk of continuing towards the lows. Either way, the market is still in a broad corrective process, implying messy/difficult price action for a while longer. Haven't seen enough evidence of an impulsive rise or fall; certainly not enough to confidently chase either direction.

View: Still broadly corrective. Watch for support at 1.1321. If held, the focus would then shift up to 1.1575- 1.1587. Setup weakens below 1.13.”

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 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 trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.