EUR/USD Forecast: Bulls pressuring, but cautious

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1282

German inflation beat estimates in June, but EU’s Economic Sentiment remained subdued.
Equities push higher despite concerns related to soaring COVID-19 cases in the US.
EUR/USD bullish in the short-term could extend its advance to 1.1350.

The EUR/USD pair is up this Monday, nearing the 1.1300 level ahead of the US opening. The dollar is under pressure as high-yielding assets are up, despite the absence of positive news. Speculative interest is trying to remain optimistic, although weighing bad news coming from the US, where the spread of coronavirus in the Southern States has pushed the number of new contagions to records these last few days.

Data coming from the Union resulted mixed, as German inflation beat estimates according to June preliminary estimates, recovering from 0.5% to 0.8% YoY. However, the EU Economic Sentiment Indicator for the same month printed at 75.7 from 80 in the previous month. The US, on the other hand, will publish later today May Pending Home Sales, expected to have fallen by 44.6% in the month, and the Dallas ed Manufacturing Business Index for the same month, seen at -59 from -49.2.

EUR/USD short-term technical outlook

The EUR/USD pair is trading just above the 23.6% retracement of its latest daily advance, recovering once again from near the 38.2% retracement of the same rally, mostly ranging. In the 4-hour chart, the pair is battling with a horizontal 100 SMA, although above the 20 and 200 SMA. Technical indicators, in the meantime, are advancing within positive levels, indicating increasing buying interest. The pair could accelerate its advance on a break above 1.1310, the immediate resistance, although gains beyond 1.1350 seem unlikely amid ongoing uncertainty and first-tier data scheduled for later this week.

Support levels: 1.1260 1.1220 1.1170

Resistance levels: 1.1310 1.1350 1.1350

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.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.