EUR/USD Price Forecast: Room for a move to 1.14 and beyond
|- EUR/USD is fading part of Monday’s advance to the 1.1380 region.
- Despite the correction, risk-on mood still prevails among traders.
The onging recovery in the greenback has prompted some correction in the price action around EUR/USD on Tuesday. In spite of the knee-jerk, the absence of a more significant catalyst to shift investors’ attention to the safe haven universe should keep the underlying upside bias in spot largely unchanged.
On the more macro view, developments from the coronavirus pandemic remain the exclusive driver of the mood in the global markets, as market participants continue to look past the current pick-up in infected cases around the world and stay focused on the economic recovery.
Near-term Outlook
EUR/USD tested and briefly surpassed the area of recent tops around 1.1370 on Monday, coming under some selling pressure soon afterwards. The rebound from the 1.1170 region (June 19/22) remains thus well in place and the next target is now at the 1.14 neighbourhood. Further north comes June’s peak near 1.1420 ahead of YTD highs in levels just shy f 1.1500 the figure (March 9). On the other hand, there is an interim support at the Fibo level at 1.1186 ahead of the more relevant 1.1170/65 band. A breach of this support band should expose a deeper pullback to, initially, the 55-day SMA at 1.1116 ahead of the always-critical 200-day SMA, today at 1.1050.
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.