EUR/USD Forecast: ECB’s Lagarde to try down-talk the shared currency
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: 1.2031
- Currencies followed equities amid the lack of macroeconomic news.
- The ECB will announce its latest monetary policy decision on Thursday.
- EUR/USD has chances of extending its advance, depends on the ECB.
The EUR/USD pair bottomed at 1.1998 this Wednesday, but it’s ending a second consecutive day unchanged in the 1.2030/40 price zone. FX traders looked at stocks for direction amid the absence of macroeconomic data that could trigger some interest. The dollar advanced as Asian stocks fell, to later decline on the back of the better performance of European and American indexes. Meanwhile, US Treasury yields ticked higher, with that on the 10-year note currently around 1.57%.
The macroeconomic calendar was empty on both shores of the Atlantic, exacerbating sentiment-related trading. On Thursday, the European Central Bank will release the outcome of its latest monetary policy meeting. The central bank is widely anticipated to maintain rates unchanged and keep front loading bond-buying, maintaining the current duration of the PEPP.
With EUR/USD above 1.2000, it is highly likely that President Christine Lagarde will try to down-talk the local currency. The coronavirus pandemic is still taking its toll on the Union, and a return to normal for people and businesses is still far away. Mrs Lagarde will need to find a way to keep supporting the euro area while preventing the EUR from running. On the other hand, the US will publish March Existing Home Sales and Initial Jobless Claims for the week ended April 16.
EUR/USD short-term technical outlook
The EUR/USD pair has a limited bearish scope despite it has lost its bullish momentum. Overall, the risk remains skewed to the upside, although the next directional move will depend on how the market reads the ECB announcement. In the near-term, the 4-hour chart shows that the pair is developing a few pips above a bullish 20 SMA, while the 100 SMA is crossing above the 200 SMA, both well below the current level. The Momentum indicator is crossing its midline into negative levels, while the RSI indicator consolidates around 57, in line with a new leg north.
Support levels: 1.1995 1.1950 1.1910
Resistance levels: 1.2045 1.2085 1.2130
EUR/USD Current Price: 1.2031
- Currencies followed equities amid the lack of macroeconomic news.
- The ECB will announce its latest monetary policy decision on Thursday.
- EUR/USD has chances of extending its advance, depends on the ECB.
The EUR/USD pair bottomed at 1.1998 this Wednesday, but it’s ending a second consecutive day unchanged in the 1.2030/40 price zone. FX traders looked at stocks for direction amid the absence of macroeconomic data that could trigger some interest. The dollar advanced as Asian stocks fell, to later decline on the back of the better performance of European and American indexes. Meanwhile, US Treasury yields ticked higher, with that on the 10-year note currently around 1.57%.
The macroeconomic calendar was empty on both shores of the Atlantic, exacerbating sentiment-related trading. On Thursday, the European Central Bank will release the outcome of its latest monetary policy meeting. The central bank is widely anticipated to maintain rates unchanged and keep front loading bond-buying, maintaining the current duration of the PEPP.
With EUR/USD above 1.2000, it is highly likely that President Christine Lagarde will try to down-talk the local currency. The coronavirus pandemic is still taking its toll on the Union, and a return to normal for people and businesses is still far away. Mrs Lagarde will need to find a way to keep supporting the euro area while preventing the EUR from running. On the other hand, the US will publish March Existing Home Sales and Initial Jobless Claims for the week ended April 16.
EUR/USD short-term technical outlook
The EUR/USD pair has a limited bearish scope despite it has lost its bullish momentum. Overall, the risk remains skewed to the upside, although the next directional move will depend on how the market reads the ECB announcement. In the near-term, the 4-hour chart shows that the pair is developing a few pips above a bullish 20 SMA, while the 100 SMA is crossing above the 200 SMA, both well below the current level. The Momentum indicator is crossing its midline into negative levels, while the RSI indicator consolidates around 57, in line with a new leg north.
Support levels: 1.1995 1.1950 1.1910
Resistance levels: 1.2045 1.2085 1.2130
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.