Platinum price surrendered to stochastic negativity this morning, to notice moving towards the minor bullish channel’s support line at 971.00$, hinting postponing the bullish attempts until gathering the positive momentum again.
We expect to get sideways trades now, noting that facing additional negative pressures might force it to crawl below the current support line to suffer losses by moving towards 958.00$ followed by attempting to test the next support at 950.00$, while rallying above 983.00$ again will reinforce the chances of renewing the bullish attempts, to target 1005.00$ as a first positive station.
The expected trading range for today is between 960.00$ and 983.00$
The GBPUSD price didn’t show any strong move in the previous sessions, to continue moving around 1.2605$ level, thus, no change to the expected bullish trend scenario for the upcoming period, which targets 1.2680$ followed by 1.2765$ levels as next positive stations, reminding you that breaking 1.2605$ and holding below it will push the price to start bearish wave that targets 1.2525$ followed by 1.2415$ areas mainly.
EUR/USD stays under modest bearish pressure and declines toward 1.0450.
US stock index futures trade in positive territory after the long weekend.
The pair’s technical outlook points to a loss of bullish momentum.
EUR/USD stays on the back foot and declines toward 1.0450 in the European session on Tuesday. The pair’s technical outlook points to a loss of bullish momentum but a positive shift in risk mood could help it limit its losses.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the Japanese Yen.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
0.34%
-0.17%
-0.23%
0.07%
-0.11%
0.20%
0.13%
EUR
-0.34%
-0.36%
-0.60%
-0.17%
-0.38%
-0.05%
-0.12%
GBP
0.17%
0.36%
-0.15%
0.19%
0.04%
0.31%
0.25%
JPY
0.23%
0.60%
0.15%
0.29%
0.14%
0.63%
0.32%
CAD
-0.07%
0.17%
-0.19%
-0.29%
-0.16%
0.12%
0.06%
AUD
0.11%
0.38%
-0.04%
-0.14%
0.16%
0.33%
0.26%
NZD
-0.20%
0.05%
-0.31%
-0.63%
-0.12%
-0.33%
-0.06%
CHF
-0.13%
0.12%
-0.25%
-0.32%
-0.06%
-0.26%
0.06%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Following a three-day weekend in the US, trading conditions are starting to normalize on Tuesday. The benchmark 10-year US Treasury bond yield gains nearly 1% on the day above 4.5%, supporting the US Dollar (USD) and weighing on EUR/USD early Tuesday.
Meanwhile, US stock index futures were last seen rising between 0.2% and 0.4%. In case Wall Street opens on a bullish note, the USD could lose interest and help EUR/USD hold its ground. Since the US economic calendar will not feature any high-tier data releases, investors could remain focused on risk perception in the second half of the day.
On Wednesday, the Federal Reserve (Fed) will release the minutes of the January policy meeting. Preliminary February HCOB Manufacturing and Services Purchasing Managers’ Index (PMI) for the Eurozone and Germany on Friday could be the next data releases that could influence the Euro’s valuation.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart declines toward 50 and EUR/USD closed the two 4-hour candles below the 20-period Simple Moving Average (SMA), reflecting a loss of bullish momentum.
Looking south, first support could be spotted at 1.0440 (Fibonacci 61.8% retracement level of the latest downtrend) before 1.0400 (100-period SMA, Fibonacci 50% retracement) and 1.0365 (200-period SMA). On the downside, resistances align at 1.0500-1.0510 (round level, Fibonacci 78.6% retracement), 1.0550 (static level) and 1.0600 (static level, beginning point of the downtrend).
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
No change to platinum price bullish track as it remains consolidated within the bullish channel, depending on the stability of 970.00$ support line to confirm the previously suggested bullish scenario, reminding you that it is important to gather the positive momentum to reinforce the chances of reaching the positive stations located near 1005.00$ followed by reaching 61.8% Fibonacci correction level at 1018.00$.
We remind you that there will be a chance to postpone the bullish attack in case facing new negative pressures, which might push it to crawl below the current support and suffer some losses by crawling towards 958.00$ and 950.00$ levels before recording any new positive target.
The expected trading range for today is between 975.00$ and 1005.00$
GBP/USD trades near 1.2600 in the European session on Tuesday.
Labor market data from the UK supports Pound Sterling.
The pair’s technical picture suggests that the bullish bias remains intact.
GBP/USD fluctuates in a narrow channel slightly above 1.2600 after closing modestly higher on Monday. The pair’s technical outlook shows that the bullish bias remains unchanged in the near term.
British Pound PRICE This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Euro.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
0.28%
-0.11%
-0.30%
0.06%
-0.17%
0.17%
0.13%
EUR
-0.28%
-0.24%
-0.62%
-0.12%
-0.37%
-0.01%
-0.04%
GBP
0.11%
0.24%
-0.31%
0.12%
-0.07%
0.23%
0.21%
JPY
0.30%
0.62%
0.31%
0.36%
0.16%
0.69%
0.43%
CAD
-0.06%
0.12%
-0.12%
-0.36%
-0.22%
0.11%
0.09%
AUD
0.17%
0.37%
0.07%
-0.16%
0.22%
0.36%
0.34%
NZD
-0.17%
0.00%
-0.23%
-0.69%
-0.11%
-0.36%
-0.03%
CHF
-0.13%
0.04%
-0.21%
-0.43%
-0.09%
-0.34%
0.03%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
The UK’s Office for National Statistics (ONS) reported early Tuesday that the ILO Unemployment Rate held steady at 4.4% in the three months to December. This reading came in better than the market forecast of 4.5%. Additionally, the Employment Change rose by 107,000 in this period, up sharply from 35,000 reported for the previous month. Finally, the annual wage inflation, as measured by the change in the Average Earnings Including Bonus, climbed to 6% from 5.6%. These figures seem to be helping Pound Sterling stay resilient against the US Dollar (USD).
In the meantime, while participating in a panel discussion titled “Preserving and enhancing open financial markets” at an event in Brussels on Tuesday, Bank of England (BoE) Governor Andrew Bailey acknowledged that they are in a period of heightened uncertainty and added that they are facing a weak growth environment in the UK.
The economic calendar will not feature any high-impact data releases on Tuesday. In case risk flows dominate the action in the financial markets in the second half of the day, GBP/USD could regain its traction. At the time of press, US stock index futures were up between 0.1% and 0.3%.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart holds above 60 and GBP/USD continues to trade above the 20-period Simple Moving Average, reflecting sellers’ hesitancy.
In case GBP/USD continues to use 1.2600 (round level) as support, it could face the next resistance at 1.2650 (Fibonacci 78.6% retracement of the latest downtrend) before 1.2700-1.2710 (round level, static level). On the downside, supports could be seen at 1.2530 (Fibonacci 61.8% retracement), 1.2500 (round level, static level) and 1.2460-1.2450 (100-period Simple Moving Average, Fibonacci 50% retracement).
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Avalanche’s currency price (AVAXUSD) gained ground in the intraday levels, amid negative pressure due to trading below the 50-day SMA, while trading alongside the downward secondary trend line in the short term, with a steep angle for the decline, indicating the strength of this trend, with negative signals from the RSI after reaching overbought levels compared to the price’s movements, hinting at negative divergence and doubling negative pressures on the price.
Therefore we expect the price to decline and target the pivotal support of $17.28.
Hedera Hashgraph’s currency price (HBARUSD) edged lower in the intraday levels, while settling below the pivotal resistance of $0.23178, representing the neckline of a negative technical pattern that formed previously in the short term, the Double Top pattern as shown in the attached chart, while also suffering from ongoing negative pressure due to trading below the 50-day SMA, as the price managed to vent off oversold saturation in the RSI.
Therefore we expect the price to decline, provided it settles firmly below the resistance of $0.23178, thus targeting the support of $0.12578 as a price target for that forming Double Top pattern.
No change to platinum price bullish track as it remains consolidated within the bullish channel, depending on the stability of 970.00$ support line to confirm the previously suggested bullish scenario, reminding you that it is important to gather the positive momentum to reinforce the chances of reaching the positive stations located near 1005.00$ followed by reaching 61.8% Fibonacci correction level at 1018.00$.
We remind you that there will be a chance to postpone the bullish attack in case facing new negative pressures, which might push it to crawl below the current support and suffer some losses by crawling towards 958.00$ and 950.00$ levels before recording any new positive target.
The expected trading range for today is between 975.00$ and 1005.00$
Avalanche’s currency price (AVAXUSD) gained ground in the intraday levels, amid negative pressure due to trading below the 50-day SMA, while trading alongside the downward secondary trend line in the short term, with a steep angle for the decline, indicating the strength of this trend, with negative signals from the RSI after reaching overbought levels compared to the price’s movements, hinting at negative divergence and doubling negative pressures on the price.
Therefore we expect the price to decline and target the pivotal support of $17.28.
USDJPY had a volatile week, nearly round-tripping its rally from 151.36 to 154.80.
Despite the pullback between Thursday and Friday, the pair could find a local bottom early next week if it carves out a higher low.
An ascending channel has developed, with support at 151.20 next week.
Additionally, the Japanese yen looks subdued following last week’s breakout, so a USDJPY bottom may depend on whether the US dollar finds support next week.
This isn’t a trade I want to rush into, but I’ll be watching for a potential higher low around 152.00.
