EUR/USD’s rebound stalls right ahead of 1.1670

The euro returns above 1.1600 to approach Octpober's top at 1.1670.
US dollar weakness allows for further euro appreciation.
EUR/USD: On a recovery mood, heading towards 1.1741 – Commerzbank.

Guillermo Alcala FXStreet

The euro keeps crawling higher against a somewhat softer US dollar on Wednesday, on track to complete a three-day recovery. The pair has confirmed above 1.1600 earlier today to ease negative pressure, before hitting resistance right below October’s peak, at 1.1670.

The euro takes advantage of a weaker US dollar

The common currency has been buoyed by a weaker greenback again on Wednesday, with the US dollar is losing ground on the back of upbeat quarterly earnings in the Healthcare sector. Better than expected earnings reported by Anthem and Abbott Laboratories have eased investors’ fears about surging inflation and supply chain disruptions.

In this background, the US Dollar Index has retreated further from the one-year high at 94.50 hit last week, reaching session lows at 93.50 area, 1% below last week’s top. The positive market sentiment has been reflected on moderate advances in Wall Street, with the S&P 500 Index rallying for the sixth consecutive day to test year-to-date highs at 4,545. The Dow Jones Index is 0.45% up, while the Nasdaq has dipped into negative territory halfway through the session to trade nearly flat at the moment of writing.

EUR/USD: Seen appreciating beyond 1.1700 – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the pair in a recovery mood, targeting 1.1741: “EUR/USD is in recovery mode near-term. The intraday Elliott wave counts remain positive and we would allow for a deeper retracement to the 1.1741 four-month downtrend.”

Technical levels to watch

EUR/USD

Overview
Today last price	1.1656
Today Daily Change	0.0022
Today Daily Change %	0.19
Today daily open	1.1634

Trends
Daily SMA20	1.1616
Daily SMA50	1.1714
Daily SMA100	1.1812
Daily SMA200	1.1926

Levels
Previous Daily High	1.167
Previous Daily Low	1.1608
Previous Weekly High	1.1624
Previous Weekly Low	1.1524
Previous Monthly High	1.1909
Previous Monthly Low	1.1563
Daily Fibonacci 38.2%	1.1646
Daily Fibonacci 61.8%	1.1632
Daily Pivot Point S1	1.1605
Daily Pivot Point S2	1.1576
Daily Pivot Point S3	1.1544
Daily Pivot Point R1	1.1666
Daily Pivot Point R2	1.1698
Daily Pivot Point R3	1.1727

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

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.