EUR/USD Forecast: Pressuring highs ahead of Powell
|EUR/USD Current Price: 1.0877
- US Federal Reserve chief Powell set to speak ahead of Wall Street’s opening.
- EU March Industrial Production fell by 12.9% YoY in April, worse than expected.
- EUR/USD mildly bullish in the short-term, but holding within familiar levels.
The EUR/USD pair is up amid the broad dollar’s weakness ahead of Wall Street’s opening, holding, however, within familiar levels. There was no particular catalyst for the latest dollar’s slide but could be attributed to some position fixing ahead of US Federal Reserve Powell’s speech. Meanwhile, equities remain in the red, although off their daily lows.
The EU has published March Industrial Production data, which fell by 11.3% in the month and by 12.9% when compared to a year earlier. The US, on the other hand, has just released the April Producer Price Index, which fell by 0.3% MoM and by 1.3% when compared to a year earlier, missing the market’s expectations.
EUR/USD short-term technical outlook
The EUR/USD pair holds on to gains ahead of Powell, trading in the 1.0870 price zone. The pair maintains a neutral stance in the short-term, although the risk is skewed to the upside as it pressures the weekly high. In the 4-hour chart, it continues to trade within directionless moving averages, while technical indicators turn north just above their midlines. The pair has better chances of extending its advance on an acceleration through 1.0890, the immediate resistance level.
Support levels: 1.0830 1.0790 1.0760
Resistance levels: 1.0890 1.0920 1.0950
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