EUR/USD Forecast: Bulls about to give up

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1999

Tepid EU services-related figures weigh on the shared currency.
US employment sector continues to grow, according to a private-sector survey.
EUR/USD trades a few pips above a critical support level at 1.1980.

The EUR/USD pair hovers around the 1.2000 price zone, trading near a fresh weekly low of 1.1985. The greenback trades mixed across the board as investors struggle to make up their minds on whether the sentiment or economic comeback should weigh more.

The shared currency is suffering from soft local data, as the April final Markit Services PMI was downwardly revised in Germany to 49.9. The index for the whole EU, however, was confirmed at 50.5 vs the preliminary estimate of 50.3. The US has published the April ADP survey on private jobs’ creation, which improved from 565K to 742K, missing the expected 800K. The focus is now on the April ISM Services PMI, foreseen at 64.3.

EUR/USD short-term technical outlook

The EUR/USD pair trades a handful of pips above the 38.2% retracement of its latest daily advance at 1.1980, the immediate support level. The risk is skewed to the downside in the near-term, with a break below such a level likely confirming a bearish extension. In the 4-hour chart, the pair is trading below the 20 and 100 SMAs, with the shorter one about to cross below the longer one. Technical indicators lack clear directional strength but hold within negative levels.

Support levels: 1.1980 1.1940 1.1900

Resistance levels: 1.2045 1.2090 1.2130

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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