EUR/USD Forecast: Next bullish target aligns at 1.0660
Premium|Take advantage of 50% OFF on your first month.
50% OFF and access to ALL our articles and insights.
You have reached your limit of 5 free articles for this month.
Take advantage of the Special Price just for today!
50% OFF and access to ALL our articles and insights.
Subscribe to Premium- EUR/USD has climbed to a fresh two-week high.
- Additional gains toward 1.0660 could be witnessed if buyers reclaim 1.0600.
- Risk flows could help the pair push higher ahead of the weekend.
EUR/USD has registered impressive gains and reached its strongest level in two weeks above 1.0600. The pair stays relatively calm in the European trading hours on Friday but the technical outlook suggests that additional gains could be witnessed in case 1.0600 is confirmed as support.
The broad-based selling pressure surrounding the greenback fueled the pair's rally on Thursday. The sharp decline in US 10-year US Treasury bond yields weighed on the currency and didn't allow it to capitalize on safe-haven flows. Poor earnings figures from big retailers in the US and their gloomy sales outlook caused investors to seek refuge and ramped up the demand for US bonds.
On Friday, the US Dollar Index, which tracks the dollar's performance against six major currencies, consolidates its losses, keeping EUR/USD's upside limited for the time being.
Later in the session, the European Commission will release the preliminary Consumer Confidence data for May. A weaker-than-expected print could make it difficult for the euro to preserve its strength.
Nevertheless, the US yields' performance is likely to continue to impact the dollar's valuation and drive EUR/USD's action ahead of the weekend. There won't be any high-tier data releases featured in the US economic docket. In case investors continue to buy bonds, the pair is could build on its weekly gains.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the four-hour chart retreated from 70 to 60, suggesting that the pair remains bullish after having corrected its overbought conditions. On the upside, 1.0600 aligns as first resistance. If that level is confirmed as support, the pair could target 1.0640 (static level) and 1.0660 (200-period SMA) afterwards.
On the flip side, 1.0550 (former resistance, static level) could be seen as first support. With a four-hour close below that level, buyers could start booking their profits and cause the pair to retreat toward 1.0520 (ascending trend line, 50-period SMA) and 1.0500 (psychological level).
- EUR/USD has climbed to a fresh two-week high.
- Additional gains toward 1.0660 could be witnessed if buyers reclaim 1.0600.
- Risk flows could help the pair push higher ahead of the weekend.
EUR/USD has registered impressive gains and reached its strongest level in two weeks above 1.0600. The pair stays relatively calm in the European trading hours on Friday but the technical outlook suggests that additional gains could be witnessed in case 1.0600 is confirmed as support.
The broad-based selling pressure surrounding the greenback fueled the pair's rally on Thursday. The sharp decline in US 10-year US Treasury bond yields weighed on the currency and didn't allow it to capitalize on safe-haven flows. Poor earnings figures from big retailers in the US and their gloomy sales outlook caused investors to seek refuge and ramped up the demand for US bonds.
On Friday, the US Dollar Index, which tracks the dollar's performance against six major currencies, consolidates its losses, keeping EUR/USD's upside limited for the time being.
Later in the session, the European Commission will release the preliminary Consumer Confidence data for May. A weaker-than-expected print could make it difficult for the euro to preserve its strength.
Nevertheless, the US yields' performance is likely to continue to impact the dollar's valuation and drive EUR/USD's action ahead of the weekend. There won't be any high-tier data releases featured in the US economic docket. In case investors continue to buy bonds, the pair is could build on its weekly gains.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the four-hour chart retreated from 70 to 60, suggesting that the pair remains bullish after having corrected its overbought conditions. On the upside, 1.0600 aligns as first resistance. If that level is confirmed as support, the pair could target 1.0640 (static level) and 1.0660 (200-period SMA) afterwards.
On the flip side, 1.0550 (former resistance, static level) could be seen as first support. With a four-hour close below that level, buyers could start booking their profits and cause the pair to retreat toward 1.0520 (ascending trend line, 50-period SMA) and 1.0500 (psychological level).
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.