EUR/USD Price Forecast: Sellers keep bulls in check

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0569

Eurozone Sentix Investor Confidence deteriorated in December to -17.5.
Market players stand in wait-and-see mode ahead of central banks’ announcements.
EUR/USD is at risk of losing the 1.0500 mark, but not in the near term.

The EUR/USD pair hovers around 1.0560 ahead of Wall Street’s opening, with action limited across financial markets ahead of key events spread throughout this week and the next one. Most major central banks will announce their decisions on monetary policy, with the European Central Bank (ECB) scheduled for this Thursday. The ECB is widely anticipated to trim interest rates by 25 basis points (bps) each amid tepid growth in the Union.

President Christine Lagarde, however, has already warned inflation won’t fall into the ECB’s goal until late next year, cooling speculation about whether inflation could affect the upcoming decisions.

The macroeconomic calendar has little to offer today. The Eurozone released December Sentix Investor Confidence, which worsened to -17.5 from -12.8 in November. The United States (US) will release October Wholesale Inventories after the opening.

EUR/USD short-term technical outlook

Technically, the daily chart for the EUR/USD pair offers a neutral stance, with the bullish potential well-limited. The pair is finding intraday buyers around a bearish 20 Simple Moving Average (SMA,) which heads lower at around 1.0530. The 100 and 200 SMAs, on the contrary, gain downward traction far above the current level. Finally, technical indicators turned modestly lower, just below their midline, lacking directional strength enough to confirm a bearish extension.

The 4-hour chart shows EUR/USD is neutral. The pair develops above its 20 and 100 SMAs, with the shorter one advancing modestly above the longer one. Yet, at the same time, the 200 SMA gains bearish strength above the current level, suggesting prevalent selling interest. Finally, technical indicators hold above their midlines yet offer neutral-to-bearish slopes.

Support levels: 1.0500 1.0465 1.0420

Resistance levels: 1.0625 1.0660 1.0700

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.