EUR/USD Forecast: Bulls hold the grip after the first test of 1.2000
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UNLOCK OFFEREUR/USD Current Price: 1.1974
- Upbeat US data boosted high-yielding equities and sent government bond yields lower.
- Investors favored equities while selling the greenback across the FX board.
- EUR/USD holds near the 1.2000 mark as risk appetite rules.
The EUR/USD pair ended Thursday trading around 1.1970, unchanged on a daily basis. However, it surged to 1.1992, a fresh April high, as risk appetite stormed financial markets to the detriment of the American currency. The greenback managed to pare its decline after the release of US macroeconomic data, which beat the market’s expectations. European equities closed with gains, while US indexes kept rallying to record highs.
Germany´s annual Consumer Price Index matched the expected 1.7% YoY. As for US data, March Retail Sales sharply recovered, printing at 9.8%, much better than the 6.3% anticipated. Initial Jobless Claims contracted to 683K in the week ended April 9, also beating expectations, while the Philadelphia Fed Manufacturing Survey came in at 50.2 in April. Finally, March Industrial Production printed at 1.4%, while Capacity Utilization in the same month printed at 74.4%.
Friday will bring EU March inflation figures, and the February Trade Balance. The US will publish March Building Permits and Housing Starts, and the preliminary estimate of the April Michigan Consumer Sentiment Index, this last foreseen at 89.6 from 84.9 in the previous month.
EUR/USD short-term technical outlook
The EUR/USD pair retains its bullish stance and is still poised to challenge the 1.2000 level. The 4-hour chart shows that the pair holds above a bullish 20 SMA, providing support at around 1.1950. The longer moving averages lack directional strength well below the shorter one, while technical indicators have lost their bullish strength, but hold within positive levels. Overall, the risk remains skewed to the upside, although the pair would need to surpass 1.2010 to be able to regain its bullish stance.
Support levels: 1.1950 1.1900 1.1860
Resistance levels: 1.2010 1.2045 1.2090
EUR/USD Current Price: 1.1974
- Upbeat US data boosted high-yielding equities and sent government bond yields lower.
- Investors favored equities while selling the greenback across the FX board.
- EUR/USD holds near the 1.2000 mark as risk appetite rules.
The EUR/USD pair ended Thursday trading around 1.1970, unchanged on a daily basis. However, it surged to 1.1992, a fresh April high, as risk appetite stormed financial markets to the detriment of the American currency. The greenback managed to pare its decline after the release of US macroeconomic data, which beat the market’s expectations. European equities closed with gains, while US indexes kept rallying to record highs.
Germany´s annual Consumer Price Index matched the expected 1.7% YoY. As for US data, March Retail Sales sharply recovered, printing at 9.8%, much better than the 6.3% anticipated. Initial Jobless Claims contracted to 683K in the week ended April 9, also beating expectations, while the Philadelphia Fed Manufacturing Survey came in at 50.2 in April. Finally, March Industrial Production printed at 1.4%, while Capacity Utilization in the same month printed at 74.4%.
Friday will bring EU March inflation figures, and the February Trade Balance. The US will publish March Building Permits and Housing Starts, and the preliminary estimate of the April Michigan Consumer Sentiment Index, this last foreseen at 89.6 from 84.9 in the previous month.
EUR/USD short-term technical outlook
The EUR/USD pair retains its bullish stance and is still poised to challenge the 1.2000 level. The 4-hour chart shows that the pair holds above a bullish 20 SMA, providing support at around 1.1950. The longer moving averages lack directional strength well below the shorter one, while technical indicators have lost their bullish strength, but hold within positive levels. Overall, the risk remains skewed to the upside, although the pair would need to surpass 1.2010 to be able to regain its bullish stance.
Support levels: 1.1950 1.1900 1.1860
Resistance levels: 1.2010 1.2045 1.2090
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