EUR/USD Forecast: Dollar’s decline continues amid easing yields, poor employment data
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFEREUR/USD Current Price: 1.1915
- The ECB could start reducing its bond purchases during the summer.
- US unemployment claims unexpectedly surged in the week ended April 2.
- EUR/USD has room to extend its advance beyond the 1.2000 mark.
The American dollar was once again the weakest, resulting in EUR/USD reaching a fresh two-week high at 1.1927. The greenback accelerated its decline as US Federal Reserve chief Jerome Powell spoke in an IMF seminar. Powell didn’t add much new to what the market already knew, but his dovish words put pressure on Treasury yields, which remain at the lower end of their weekly range.
On the other hand, Robert Holzmann, Austrian Central Bank Governor, said that the European Central Bank might be able to start reducing its bond purchases during the summer, providing support to the shared currency.
Germany published February Factory Orders, which were up 1.2% MoM and 5.6% YoY, much better than in January. The EU released the February Producer Price Index, which printed at 1.5% YoY. US Initial Jobless Claims for the week ended April 2 resulted at 744K worse than the 680K expected and the previous 728K. On Friday, Germany will publish February Industrial Production and the Trade Balance for the same month. The US will only release February Producer Price Index figures.
EUR/USD short-term technical outlook
The EUR/USD pair trades near the mentioned daily high, with chances of extending its advance. The 4-hour chart shows that the price struggles around a mildly bearish 200 SMA, while it remains above a firmly bullish 20 SMA that has crossed above the 100 SMA. Technical indicators lack directional strength, but the Momentum remains well above its midline while the RSI consolidates at 76. March 22 high at 1.1946 is the immediate resistance level, with a break above it favoring an extension beyond 1.2000.
Support levels: 1.1890 1.1840 1.1795
Resistance levels: 1.1945 1.1995 1.2040
EUR/USD Current Price: 1.1915
- The ECB could start reducing its bond purchases during the summer.
- US unemployment claims unexpectedly surged in the week ended April 2.
- EUR/USD has room to extend its advance beyond the 1.2000 mark.
The American dollar was once again the weakest, resulting in EUR/USD reaching a fresh two-week high at 1.1927. The greenback accelerated its decline as US Federal Reserve chief Jerome Powell spoke in an IMF seminar. Powell didn’t add much new to what the market already knew, but his dovish words put pressure on Treasury yields, which remain at the lower end of their weekly range.
On the other hand, Robert Holzmann, Austrian Central Bank Governor, said that the European Central Bank might be able to start reducing its bond purchases during the summer, providing support to the shared currency.
Germany published February Factory Orders, which were up 1.2% MoM and 5.6% YoY, much better than in January. The EU released the February Producer Price Index, which printed at 1.5% YoY. US Initial Jobless Claims for the week ended April 2 resulted at 744K worse than the 680K expected and the previous 728K. On Friday, Germany will publish February Industrial Production and the Trade Balance for the same month. The US will only release February Producer Price Index figures.
EUR/USD short-term technical outlook
The EUR/USD pair trades near the mentioned daily high, with chances of extending its advance. The 4-hour chart shows that the price struggles around a mildly bearish 200 SMA, while it remains above a firmly bullish 20 SMA that has crossed above the 100 SMA. Technical indicators lack directional strength, but the Momentum remains well above its midline while the RSI consolidates at 76. March 22 high at 1.1946 is the immediate resistance level, with a break above it favoring an extension beyond 1.2000.
Support levels: 1.1890 1.1840 1.1795
Resistance levels: 1.1945 1.1995 1.2040
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.