EUR/USD: Short squeeze – OCBC

FXStreet Insights Team FXStreet

The Euro (EUR) rebounded as US Dollar (USD) bulls paused. Pair was last at 1.0575 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

ECB speakers to take over the narrative this week

“Daily momentum remains bearish bias though there are signs of it waning while RSI shows tentative signs of turning higher from near oversold conditions. Falling wedge and inverted hanging man (last Fri) observed. Technical signs suggest EUR bears may be feeling the fatigue and risk of short squeeze/ bullish reversal is not ruled out in the near term. Resistance at 1.06, 1.0740 (21 DMA), 1.0860 (200 DMA). Support at 1.05, 1.0450 levels.”

“This week brings plenty of ECBspeaks (about 26 officials this week), including Lagarde in Frankfurt (Fri). Overnight, Lagarde urged Europe to pool its resources in areas like defence and climate as productivity growth falters and world fragments into rival blocs.”

“Stournaras said that ECB is almost certain to cut interest rates by a quarter point in Dec while Makhlouf said there is no rush to lower rates at a faster pace. Nagel warned that trade tensions can lead to greater inflationary pressures.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.