EUR/USD - Selling stalls, focus on German yields

Omkar Godbole FXStreet Contributor

The relentless selling in the EUR/USD pair appears to have come to a halt in Asia. Thus, a chart driven upside move is gathering steam.

The current pair was last seen trading around 1.0568 levels; up 0.10% on the day.

Focus on German yields

The European Central Bank has said that the common currency area faces political risk ahead. As per the ECB, Trump victory poses risk to Eurozone as well.

However, the odds of the ECB expanding its QE program in December have dropped somewhat on concerns of bond market liquidity.

Consequently, the bond yields might recover, thus lending a helping hand to the oversold EUR. However, the ‘Trump Bump’ and the resulting spike in the treasury yields is showing no signs of exhaustion. Hence, the action in the treasury yields too could influence the pair.

EUR/USD Technical Levels

A break above 5-DMA level of 1.0584 would open doors for 1.0628 (10-DMA), which if breached could yield a rally to 1.0658 (Nov 22 high). On the other hand, a breakdown of support 1.0538 (Asian session low) would expose 1.05 (zero figure), under which the losses could be extended to 1.0463 (March 2015 low).

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.