EUR/USD has so far defended the 100-Day Moving Average and low of January near 1.0520/1.0480 resulting in an initial bounce. Economists at Société Générale note that reclaiming 1.0800 would negate Head and Shoulders pattern.
Break below 1.0520/1.0480 to trigger an extended down move
“It is worth noting that the pair is evolving within a possible Head and Shoulders; the pattern towards downside should a breakdown below neckline materialize. Recent pivot high near 1.0800 is a short-term resistance, this must be reclaimed to negate the formation.”
“If the pair breaks the neckline at 1.0520/1.0480, an extended down move is not ruled out. Next objectives would be at 1.0330 and September 2022 peak of 1.0220/1.0200.”
EUR/USD continues to push higher toward 1.0800 on broad USD weakness
EUR/USD preserves its bullish momentum and continues to push higher toward 1.0800 on Tuesday. The positive shift witnessed in risk sentiment doesn’t allow the US Dollar to find demand and helps the pair push higher. Existing Home Sales will be featured in the US economic docket.
EUR/USD News
GBP/USD remains pressured around 1.2250 despite upbeat mood
GBP/USD is on a corrective move lower while testing 1.2250 in the early European morning. A pause in the US Dollar decline is weighing on the pair, despite a better market mood. Investors stay cautious amid the global banking woes and ahead of the Fed decision.
GBP/USD News
Pullback from yearly highs continues as Credit Suisse rescue soothes markets
Gold price pulls back from its yearly high as global banking jitters pass (for now) and US Treasury yields find a floor, supporting a stronger US Dollar. The precious metal trades at $1,972 at the time of writing as it continues to consolidate within a technical uptrend.
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