EUR/USD: A drop to 1.0515 appears in the pipeline

Pablo Piovano FXStreet

UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia see EUR/USD slipping back to the 1.0515 region in the near term.

Key Quotes

24-hour view: After EUR dropped sharply to a low of 1.0572 on Monday, we highlighted yesterday that “there is room for EUR to weaken further to 1.0555 before stabilisation is likely.” EUR did not quite reach 1.0555 as it dropped to a low of 1.0560 before ending the day at 1.0570 (0.19%). While there is no sign of stabilisation yet, there is also no significant increase in downward momentum. Today, EUR could decline further to 1.0545 before levelling off. The major support at 1.0515 is unlikely to come into view. On the upside, if EUR breaks above 1.0605 (minor resistance is at 1.0590), it would mean that EUR is not weakening further.

Next 1-3 weeks: Our update from yesterday (26 Sep, spot at 1.0590) still stands. As highlighted, the recent price action suggests that EUR is likely to weaken to 1.0515 in the coming days. EUR’s downside risk remains if it stays below 1.0650 (‘strong resistance’ level was at 1.0665 yesterday).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retains positive bias amid sustained safe-haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

AUD/USD rises toward three-year highs on RBA rate hike bets

AUD/USD remains stronger for the third successive session, trading around 0.7120 during the Asian hours on Thursday. The pair advances toward its three-year high of 0.7147, last touched on February 12, as the Australian Dollar strengthens following hotter-than-expected inflation data from Australia, reinforcing expectations of further interest rate hikes by the Reserve Bank of Australia this year.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.