EUR/USD risks further downside while below the 1.1400 level.24-hour view: “Our view for EUR to ‘weaken further’ amid oversold conditions was wrong as it rebounded sharply to end the day higher by 0.45% (1.1356). While upward momentum has not improved by much, there is room for the rebound to extend. That said, any advance is unlikely to threaten the strong resistance at 1.1400 (1.1380 is already quite a strong level). On the downside, a breach of 1.1315 (minor support is at 1.1335) would indicate that the current mild upward pressure has eased.”
Next 1-3 weeks: “Yesterday (15 Feb, spot at 1.1305), we highlighted that EUR is likely to weaken further and the next level to watch is at 1.1240. We did not anticipate the subsequent sharp rebound. However, our ‘strong resistance’ level at 1.1400 is still intact and there is no change in our view for now. That said, oversold shorter-term conditions suggest that it may take a while before EUR head lower again. Overall, the downside risk is intact unless EUR moves above 1.1400 (no change in ‘strong resistance’ level from yesterday).”
EUR/USD holds steady around 1.1350 ahead of Fed Minutes, US Retail Sales.EUR/USD consolidates the biggest daily gains in two weeks around 1.1350. Market’s cautious optimism weighs on yields but the US dollar stays hopeful, as the Russia-Ukraine geopolitical tensions linger. Focus shifts to US Retail Sales, Fed minutes.
EUR/USD News .GBP/USD clings to gains above 1.3550 after hot UK inflation data
GBP/USD is posting modest daily gains above 1.3550 as investors assess inflation data from the UK. The ONS reported on Wednesday that the annual CPI edged higher to 5.5% on a yearly basis in January, compared to the market expectation of 5.4%. Eyes on Russia-Ukraine headlines, US data.