EUR/USD Forecast: Waiting for chief Powell
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Subscribe to PremiumEUR/USD Current Price: 1.2070
- The German GFK Consumer Confidence survey unexpectedly contracted to -8.8 in May.
- The US Federal Reserve is expected to maintain its policy unchanged, focus on QE.
- EUR/USD consolidates monthly gains lacking bullish potential in the near-term.
The EUR/USD pair trades at around 1.2070, pretty much unchanged on a daily basis ahead of the US Federal Reserve’s monetary policy announcement. Investors are mildly optimistic ahead of the event, scheduled for Wednesday’s afternoon.
US Treasury yields are up, as well as stocks, with the greenback mostly up across the board, although major pairs remain within familiar levels. Germany published the May GFK Consumer Confidence Survey, which printed at -8.8 worse than the previous -6.1 and missing the expected -3.5. The US released the preliminary estimate of the March Goods Trade Balance, which printed a deficit of $-90.59 billion. As for the Fed, investors are expecting the central bank to maintain rates on hold, with the focus on whatever chief Jerome Powell says on the future of quantitative easing.
EUR/USD short-term technical outlook
The near-term picture for the EUR/USD pair suggests a possible slide ahead without confirming it. The 4-hour chart shows that it has broken below its 20 SMA, which heads marginally higher a few pips above the current level. Technical indicators, in the meantime, head south, the Momentum within negative levels but the RSI holding around 51. The upcoming direction will depend on how the market reads Powell, but in general, the dollar has limited bullish scope.
Support levels: 1.2050 1.2010 1.1985
Resistance levels: 1.2115 1.2160 1.2200
EUR/USD Current Price: 1.2070
- The German GFK Consumer Confidence survey unexpectedly contracted to -8.8 in May.
- The US Federal Reserve is expected to maintain its policy unchanged, focus on QE.
- EUR/USD consolidates monthly gains lacking bullish potential in the near-term.
The EUR/USD pair trades at around 1.2070, pretty much unchanged on a daily basis ahead of the US Federal Reserve’s monetary policy announcement. Investors are mildly optimistic ahead of the event, scheduled for Wednesday’s afternoon.
US Treasury yields are up, as well as stocks, with the greenback mostly up across the board, although major pairs remain within familiar levels. Germany published the May GFK Consumer Confidence Survey, which printed at -8.8 worse than the previous -6.1 and missing the expected -3.5. The US released the preliminary estimate of the March Goods Trade Balance, which printed a deficit of $-90.59 billion. As for the Fed, investors are expecting the central bank to maintain rates on hold, with the focus on whatever chief Jerome Powell says on the future of quantitative easing.
EUR/USD short-term technical outlook
The near-term picture for the EUR/USD pair suggests a possible slide ahead without confirming it. The 4-hour chart shows that it has broken below its 20 SMA, which heads marginally higher a few pips above the current level. Technical indicators, in the meantime, head south, the Momentum within negative levels but the RSI holding around 51. The upcoming direction will depend on how the market reads Powell, but in general, the dollar has limited bullish scope.
Support levels: 1.2050 1.2010 1.1985
Resistance levels: 1.2115 1.2160 1.2200
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