EUR/USD faces a corrective decline and drops to 1.0860.The short-term bullish bias remains unchanged above 1.0690.
EUR/USD retreats for the second sessiorow and revisits the 1.0860 region on Friday.While above the short-term support line around 1.0690, extra gains should remain in store for the pair.
Indeed, the continuation of the uptrend now needs to rapidly clear the 2023 high at 1.0929 (January 26) to allow for a test of the weekly top at 1.0936 (April 21 2022). A sustainable break above this level could pave the way for a challenge of the key barrier at 1.1000 the figure sooner rather than later.
In the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0309.
EUR/USD stays below 1.0900 after US data
EUR/USD continues to trade in a relatively tight range below 1.0900 on Friday. The data from the US showed that the annual PCE inflation declined to 5% in December from 5.5% in November but failed to trigger a significant reaction. Investors await US Pending Home Sales data.
GBP/USD trades on the back foot below 1.2400
GBP/USD is having a difficult time gathering recovery momentum and trading in negative territory below 1.2400 on Friday. Although the data from the US showed that PCE inflation continued to soften in December, the US Dollar’s losses remain limited.
Gold clings to small daily gains above $1,930
Gold price has managed to stage a rebound and climbed above $1,930 after having declined toward $1,920 earlier in the day. The benchmark 10-year US Treasury bond yield retreated modestly from daily highs after the latest US data, helping XAU/USD edge higher.