EUR/USD - Highest daily close since Dec. 2014, what's next?

Euro closed yesterday above 1.25.
Hawkish ECB sound bites support EUR.
Focus on US wage growth number.

Omkar Godbole FXStreet Contributor

EUR/USD closed above 1.25 for the first time since Dec. 2014.

The bid tone around the EUR strengthened reportedly due to the news that some ECB officials are calling for a clearer interest rate guidance. Also, ECB's Nowotny said the bank could consider ending its QE program.

All eyes on US wage growth figure

"The focus will be on wage growth and the unemployment rate. The unemployment rate is expected to remain unchanged, but wage growth could slow after rising 2 months in a row", Kathy Lien from BK Asset Management said.

Despite being overbought (as per the daily RSI), the EUR/USD could rise well above 1.2549 (monthly 100-MA) if the US wage growth number disappoints expectations. A move to 1.25 has already revived interest in EUR calls.

Meanwhile, a pullback could be seen if the US wage growth and NFP beat estimates. That said, the dip could be short-lived. Lien says, "there should be significant buyers between 1.2250 and 1.2350."

EUR/USD Technical Levels

The spot traded just below 1.25 in Asia. FXStreet Chief Analyst Valeria Bednarik writes, " short-term technical readings continue indicating that the upward momentum is limited, mostly due to the pair being ranging ever since the day started. Nevertheless, it remains above the 23.6% retracement of its January rally, and in the 4 hours chart, is now moving away from its 20 SMA for the first time this week. Technical indicators in the mentioned chart lack upward strength, but hold within positive territory. The multi-year high of 1.2535 is a key resistance for this Friday, as a break above the level on poor US data, will likely see the pair nearing 1.2600 ahead of the weekly close.

Support levels: 1.2440 1.2400 1.2360

Resistance levels: 1.2500 1.2535 1.2580

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.