EUR/USD Forecast: Sentiment stabilizes, bulls back in control
|EUR/USD Current Price: 1.2203
- A better market sentiment quickly affected the dollar’s demand.
- US Initial Jobless Claims contracted to 444K in the week ended May 14.
- EUR/USD is struggling to extend gains, but bears have no chances.
The EUR/USD pair recovered some ground so far this Thursday, battling to extend gains beyond the 1.2200 threshold. The pair bottomed at 1.2159 on Wednesday, following the release of the latest FOMC Meeting’s Minutes, which put chances of a tighter monetary policy back on the table, spurring risk-aversion across financial markets. The mood, however, improved within Asian trading hours to stabilize during the European session.
A light macroeconomic calendar helps to maintain the volatility limited. So far today, the EU released the March Current Account, which posted a seasonally adjusted surplus of €17.8 billion and better-than-anticipated Construction Output data for the same month, up 18.3%. The US published the Philadelphia Fed Manufacturing Survey, which came in at 31.5 in May, worse than the 43 expected. Initial Jobless Claims for the week ended May 14 resulted in 444K beating the 450K expected.
EUR/USD short-term technical outlook
The EUR/USD pair is neutral-to-bullish in the near-term. The 4-hour chart shows that the pair is recovering above a mildly bullish 20 SMA, while technical indicators aim to advance within positive levels. The bullish momentum, however, is limited, and the pair would need to clear the 1.2245 level to extend its advance with a firmer tone during the upcoming sessions.
Support levels: 1.2180 1.2140 1.2095
Resistance levels: 1.2245 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.