TNote: Weak daily volatility is likely to limit any rebounds - Natixis

Sandeep Kanihama FXStreet Contributor

The weak daily volatility is likely to limit any rebounds in TNote, especially since the weekly stochastic remains downbeat, according to Micaella Feldstein, Research Analyst at Natixis.

Key quotes

“Under these conditions, a clean breakout above 127-127.02 (upper band of daily Bollinger) looks difficult. Watch out rather for a pullback towards the support around 126.11-126.13 (lower band of daily Bollinger). Keep an eye on these last levels, as a break below this support would open the way for a more pronounced correction towards 125.18-125.20 (weekly Bollinger moving average). Resistance levels are located around 127-127.02, at 127.07, around 127.14-127.16, at 128 and at 128.07.”

“127-127.02 resistance seems toppish. Watch out rather for pullbacks towards the support around 126.11-126.13.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.