EUR/USD Forecast: Bulls mounted on hopes

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1902

Mixed US data provides support to high-yielding assets.
Brexit-related concerns temporarily interrupted the dollar’s slide.
EUR/USD is neutral-to-bullish in the near-term, could reach 1.2011.

The EUR/USD pair peaked at 1.1929 during European trading hours, as the upbeat mood continues. The pair suffered a knee-jerk and fell to 1.1881 from such a high, as discouraging Brexit headlines gave the greenback a temporal lift. European Commission´s leader Ursula von der Leyen said that she cannot tell if in the end there will be a Brexit trade deal.

The EU didn’t publish relevant data, but the US has offered a good number of macroeconomic figures. Durable Goods Orders were up 1.3% in October, beating expectations, while the core reading printed at 0.7% against the 0.5% forecast. Q3 economic growth was confirmed at 33.1%, while Initial Jobless Claims for the week ended November 20 came in worse than expected, up to 778K. Mixed news had a limited effect on currencies, with the dollar down within range against the shared currency.

EUR/USD short-term technical outlook

The EUR/USD pair trades around 1.1900, poised to extend its advance. The 4-hour chart shows that it remains above a mildly bullish 20 SMA, which grinds higher above the longer ones. Technical indicators remain within positive levels but lack directional strength. Renewed buying interest above 1.1920 could see the pair extending its advance up to 1.2011, this year´s high.

Support levels: 1.1810 1.1770 1.1715

Resistance levels: 1.1920 1.1960 1.2010

View Live Chart for the EUR/USD

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 struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.