e
What a start of the year we had. Following Year's End holidays with markets volumes reduced to their minimum expression, China rocked the financial world, with further signs of economic slowdown triggering risk-aversion rallies and a wild sell-off in socks worldwide. Save havens gold, JPY and CHF surged, whilst the common currency also benefited, rising as local shares plunged, and favored by its newly acquired condition of funding currency. 

Adding to China, was the Middle East with an escalating conflict between Saudi Arabia and Iran after the execution of a prominent Shi'ite cleric, suspected of terrorism. 

In fact, such woes were  more relevant than US Nonfarm Payrolls this time, as the release of surprisingly positive news have barely affected  the forex board. The US managed to add 292K new jobs in December, while the unemployment rate remained steady at 5%, indeed good news. Wages were a miss and the main reason why the greenback couldn't rally. 

View the Live chart of the EUR/USD

As for the EUR/USD pair, it has held  to its lately soft bullish tone, despite trading within a familiar range.  Early in the week, the pair fell down to 1.0710, meeting buying interest around the 61.8% retracement of its December rally, from where it recovered around 200 pips, in line with the ongoing positive sentiment towards the common currency. The weekly chart however, shows that the price is well below a bearish 20 SMA while the technical indicators head nowhere below their mid-lines. In the daily chart, the price is struggling t o close the week above the 20 DMA, but the technical indicators turned lower around their mid-lines, lacking a clear directional strength. In this last time frame, the price remains below the 100 and 200 DMAs, both with bearish slopes. 

Some steady gains above 1.0930, the immediate Fibonacci resistance and the first line of selling, should lead to an advance up to 1.1050/60, while beyond this last the next bullish target comes at 1.1120 for this week.

1.0840 is the immediate short term support, although it would take some downward acceleration below 1.0780 to confirm a bearish breakout down to the mentioned weekly low, ahead of the 1.0500 region. 

Latest updates on the EUR/USD Forecast

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited. 

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures