EUR/USD analysis: stocks at records hit the common currency

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1417

It was a really bad day for the greenback, but the common currency was unable to benefit from its rivals' weakness, plunging with the strong momentum triggered in worldwide equities by Fed's Yellen. The chief of the American central bank testified before the Congress, with her statement released 90 minutes before the event. The document was seen as dovish, as policymakers noted uncertainty surrounding inflation, and while reaffirming that they are still in the tightening path, it won't take much more rate hikes to reach what they consider "normal." After the statement and the Q&A, market players reconsidered that Yellen was not that dovish after all, but the dollar remained under pressure anyway, as news coming from different fronts, such as Canada rising rates, or strong employment data in the UK, fueled demand for high yielding currencies.

The EUR/USD pair closed the day above the 1.1400 figure, having reached a fresh 2017 high of 1.1489 at the beginning of the day, and despite the sharp intraday retracement, the downward potential remains limited according to the 4 hours chart, as the price settled a few pips above a still bullish 20 SMA, whilst technical indicators are currently bouncing from their mid-lines, after correcting overbought conditions reached earlier on the day. The pair has an immediate support in the 1.1380/90 region, where buying interest surged ever since the week started, followed by a daily ascendant trend line currently around 1.1340.

Support levels: 1.1385 1.1340 1.1290

Resistance levels: 1.1460 1.1490 1.1525

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.