EUR/USD has failed at the key technical level of 1.0944/48 and holds short-term momentum divergence, which points to the potential for a short-term sell-off, economists at Credit Suisse report.Short-term momentum turns lower on the back of a bearish divergence
“We continue to look for a top at 1.0944/48 for now and for a deeper setback over the next week or so, especially with short-term momentum turning lower on the back of a bearish divergence, with first support at 1.0767/36. Below here would trigger a deeper short-term sell-off, with support then seen next at the 55DMA, currently at 1.0618, which is the most we can envisage the market falling at this stage.”
“Bigger picture, our bias recently shifted and we now look for an eventual break above 1.0944, post a pullback, with next resistance at 1.1185, potentially the 61.8% retracement at 1.1275.”
EUR/USD holds in positive territory below 1.0900 after EU data
EUR/USD continues to trade in positive territory slightly below 1.0900. The data from the Eurozone showed that the annual HICP inflation declined to 8.5% in January from 9.2% in December but this reading doesn’t seem to be weighing on the Euro. Focus shifts to US data.
GBP/USD trades sideways above 1.2300, Fed looms
GBP/USD is struggling to gain any meaningful upside traction above 1.2300 in early Europe. The pair remains supported as the US Dollar licks its wounds amid weaker US Treasury yields and cautious trading ahead of the Fed policy announcements. US PMIs will be also eyed.
Gold price appears ‘buy the dips’ trade on Federal Reserve verdict
Gold price is trading listlessly below $1,930 early Wednesday, lacking a clear directional bias, as traders move on the sidelines ahead of the all-important Fed monetary policy decision. The US Dollar is struggling to find its feet amid weak US Treasury bond yields and cautious markets.
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