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 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.