EUR/USD Forecast: Bulls aim to conquer the 1.1000 threshold

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0993

The US Dollar eases following poor American data and despite a souring mood.
Federal Reserve Chairman Jerome Powell will testify again before Congress.
EUR/USD is technically bullish and could run towards 1.1100 before the weekend.

The EUR/USD pair traded as high as 1.1011 during London trading hours, retreating afterwards but holding on to modest intraday gains at around 1.0990. The Euro is among US Dollar’s strongest rivals, up despite the souring market mood.

The USD fell on Wednesday, following the first day of Federal Reserve (Fed) Chairman Jerome Powell’s testimony before Congress. Powell repeated that rate decisions would be made meeting by meeting and left the door open for additional hikes, although clarifying the pace will be moderated. Stock markets advanced as an immediate reaction to the detriment of the safe-haven Greenback. Equities resumed their slides early on Thursday, but the USD is unable to gain momentum, trading mixed across the FX board.

Data-wise, the Eurozone did not release relevant figures, while the United States (US) published Initial Jobless Claims for the week ended June 16, which rose to 264K. Also, the Q1 Current Account posted a deficit of 219.3 billion, while the May Chicago Fed National Activity Index unexpectedly fell to -0.15. Discouraging US figures add to the poor market sentiment ahead of Wall Street’s opening.

Later in the day, the US will release May Existing Home Sales while the EU will unveil the preliminary estimate of June Consumer Confidence. Additionally, Fed Chair Powell will repeat his testimony before a different congressional commission.

EUR/USD short-term technical outlook

The EUR/USD pair retains its bullish stance, according to the daily chart. The Momentum indicator has extended its advance, maintaining its bullish slope at its highest in over two months, while the Relative Strength Index (RSI) indicator consolidates near overbought readings without signs of upward exhaustion. At the same time, the pair develops above all its moving averages, with the 20-day Simple Moving Average (SMA) crossing above the 100-day SMA, both at around 1.0800.

The pair is overbought in the near term, but there are no signs it could change course. In the 4-hour chart, technical indicators consolidate at extreme levels while moving averages advance well below the current level, with a bullish 20-period SMA providing dynamic support at around 1.0945.

Support levels: 1.0945 1.0890 1.0850

Resistance levels: 1.1020 1.1060 1.1100

View Live Chart for the EUR/USD

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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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