EUR/USD to post a small rebound before resuming its downfall to 1.1575 – Commerzbank

FXStreet Insights Team FXStreet

EUR/USD is holding over the 1.1704 2021 low for now. While Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, allows for a minor rebound, the pair is set to fall afterward as low as 1.1575.

See – EUR/USD to suffer a substantial drop to 1.16 on a slide below 1.17 – SocGen

Scope for the 200-week ma at 1.1575

“EUR/USD is currently holding over the March low at 1.1704, we note the 13 counts on the intraday charts and would allow for a small rebound, nearby resistance is the downtrend at 1.1852.”

“Below the March low at 1.1704 will see a slide to 1.1602, the November 2020 low. Please note that the 200-week ma lies at 1.1575 and this remains our target.”

“Last week's high at 1.1909 is seen as an interim high and this guards the 200-day ma at 1.2010/11.”

“Initial resistance is the 1.1860 resistance line.”

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 breaks below 1.1800, two-week lows

EUR/USD’s selling pressure is gathering pace now, breaching below the key 1.1800 yardstick to hit new two-week troughs on Wednesday. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and ahead of the publication of the FOMC Minutes.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.