EUR/USD Forecast: Eyes on 1.2349 amid broad dollar’s weakness
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: 1.2221
- EU Gross Domestic Product confirmed at -0.6% QoQ in the three months to March.
- US housing-related data unexpectedly fell in April, adding pressure on the greenback.
- EUR/USD trades at its highest since February and is poised to extend its advance.
The EUR/USD pair surged to 1.2233, its highest since last February, maintaining its bullish strength and pressuring the mentioned high ahead of Wall Street’s opening. The dollar plummeted as US Federal Reserve officials reaffirmed the commitment to maintain their ultra-loose monetary policy, despite rising inflationary pressures. Stocks recovered in Asia, leading to positive developments in Europe. Meanwhile, US Treasury yields remain unchanged on a daily basis, weighing on a potential dollar’s demand.
On the data front, Europe published a revision of the first quarter Gross Domestic Product, which matched the previous estimate by printing at -0.6% QoQ. The annual reading was also unchanged at -1.8%. The US published April Building Permits, which increased a modest 0.3%, while Housing Starts in the same month fell 9.5%. The market showed no reaction to US housing-related figures.
EUR/USD short-term technical outlook
The EUR/USD pair is trading at daily lows, overbought in the near-term but still poised to extend its advance. The 4-hour chart shows that technical indicators hold to extreme levels despite decelerating, as the price moves above all of its moving averages, with the 20 SMA accelerating north above the longer ones. The pair could extend its advance once above 1.2240, the immediate resistance level, heading towards 1.2349, the year high.
Support levels: 1.2180 1.2140 1.2095
Resistance levels: 1.2240 1.2290 1.2330
EUR/USD Current Price: 1.2221
- EU Gross Domestic Product confirmed at -0.6% QoQ in the three months to March.
- US housing-related data unexpectedly fell in April, adding pressure on the greenback.
- EUR/USD trades at its highest since February and is poised to extend its advance.
The EUR/USD pair surged to 1.2233, its highest since last February, maintaining its bullish strength and pressuring the mentioned high ahead of Wall Street’s opening. The dollar plummeted as US Federal Reserve officials reaffirmed the commitment to maintain their ultra-loose monetary policy, despite rising inflationary pressures. Stocks recovered in Asia, leading to positive developments in Europe. Meanwhile, US Treasury yields remain unchanged on a daily basis, weighing on a potential dollar’s demand.
On the data front, Europe published a revision of the first quarter Gross Domestic Product, which matched the previous estimate by printing at -0.6% QoQ. The annual reading was also unchanged at -1.8%. The US published April Building Permits, which increased a modest 0.3%, while Housing Starts in the same month fell 9.5%. The market showed no reaction to US housing-related figures.
EUR/USD short-term technical outlook
The EUR/USD pair is trading at daily lows, overbought in the near-term but still poised to extend its advance. The 4-hour chart shows that technical indicators hold to extreme levels despite decelerating, as the price moves above all of its moving averages, with the 20 SMA accelerating north above the longer ones. The pair could extend its advance once above 1.2240, the immediate resistance level, heading towards 1.2349, the year high.
Support levels: 1.2180 1.2140 1.2095
Resistance levels: 1.2240 1.2290 1.2330
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.