- EUR/USD: the quiet before the storm, awaiting key data and political events.
- EUR/USD: daily sticks are leaning bullish, bull hammer formed.
EUR/USD has been drifting sideways in a quiet start to what might turn into a storm on the back of economic and geopolitical events taking place. Meanwhile, the single unit is currently trading at 1.2272 with a high of 1.2279 and a low of 1.2265.
USD was lower on Friday after the non-farm payrolls miss, despite slightly improved wages. The previous two months were revised net -50k, and the Fed expectations were dampened by the report. Powell was sticking to his rate path guns though and wasn't prepared to speculate in regards to potential headwinds from trade war risks, pooer equities and high volatility.
Trade wars are the dominant force - Westpac
With a focus back to data, the German Retail Sales poor outcome and IP miss were not helpful in the case of the bulls and eyes will now turn to German Feb trade balance and EZ April Sentix index early this week. We also have US CPI and FOMC minutes, Summit of the Americas and the Boao Forum as further key risk events, the latter coming up tomorrow and will be monitored after risk soured on Friday when Mnuchin said there is the potential of a trade war with China leaving EUR/USD closing near 1.2290 for the week.
EUR/USD levels
Technical indicators lean bullish with the pair up after a new low was set and RSI diverging on new low with a bull hammer formed. Valeria Bednarik, chief analyst at FXStreet explained shorter term, and according to the 4 hours chart, the pair presents a neutral stance:
"It settled above a now flat 20 SMA, while technical indicators are stuck around their mid-lines. Steady gains beyond 1.2300 could favor an extension up to 1.2370, while below 1.2250, the pair will likely extend its slide below the 1.2210 region."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.