EUR/USD Forecast: Bulls maintain the pressure as the mood improves

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0840

The surprise outcome of the French elections brought relief to financial markets.
The United States will publish the June Consumer Price Index this week.
EUR/USD pressures July high, faces strong resistance at around 1.0850.

A better market mood weighs on safe-haven assets at the beginning of the week, resulting in the US Dollar shedding ground against its European rivals. The EUR/USD pair reached a fresh July high of 1.0842, holding nearby ahead of Wall Street’s opening. Market participants recovered their optimism following the United States (US) Nonfarm Payrolls (NFP) report published last Friday, which showed the country added 206K new jobs in June, but also that the Unemployment Rate ticked higher to 4.1%, while wage-related inflation eased.

Speculative interest breathed after French elections showed no conclusive result but kept the far right away from the leadership. A left-wing alliance won the second round of the snap election, while Marine Le Pen’s far-right party came in third.

European data kept the EUR/USD in check, as the Eurozone Sentix Investor Confidence Index unexpectedly fell to -7.3 in July from 0.3 in June. On a positive note, Germany reported a Trade Balance superavit of €24.9 billion in May, better than anticipated. The American session will bring short-term bill auctions and May Consumer Credit Change. Later in the week, the country will publish the June Consumer Price Index (CPI).

EUR/USD short-term technical outlook

The daily chart for the EUR/USD pair shows it found intraday support above the converging 100 and 200 Simple Moving Averages (SMAs), providing support at around 1.0790. The 20 SMA, in the meantime, lost its directional strength and turned flat below the longer ones. Finally, technical indicators have turned flat within positive levels but show no signs of giving up.

In the near term, and according to the 4-hour chart, a bullish 20 SMA attracted buyers during Asian trading hours while it extends its bullish slope above the longer ones. Technical indicators, in the meantime, resume their advance within positive levels and following a corrective slide, in line with persistent buying interest.

Support levels: 1.0790 1.0740 1.0700

Resistance levels: 1.0850 1.0880 1.0930

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.