EUR/USD Forecast: dollar bulls trying to come back

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1501

Market players waiting for fresh US-China headers for next direction.
EUR/USD gains could be seen as corrective if daily high remains intact.

The EUR/USD pair recovered the 1.1500 level on the back of Trump's comments late Monday, hitting rival economies and self-officers, no other than Fed's chief Jerome Powell. The EUR/USD pair surged up to 1.1541 in the Asian session, although the negative tone of the greenback begun easing with London opening, with the pair now struggling around the key threshold ahead of Wall Street's opening. There were no macroeconomic news in Europe, and there are no relevant ones scheduled in the US, leaving upcoming direction depending on fresh headlines related to trade relations between the US and China. In the meantime, the USD finally corrected the extreme overbought conditions seen over these last couple of weeks, and while there's room for the corrective movement to continue without affecting the dominant bearish trend, seems that dollar's bulls are ready to return, not testing bears' determination

The daily chart shows that the pair briefly surpassed a bearish 20 SMA, now struggling below it, also that technical indicators have lost their upward momentum right below their midlines, now turning flat, suggesting that as higher the pair goes, the lesser is buying interest. Shorter term, and according to the 4 hours chart, the rally stalled around a bearish 100 SMA, with the pair trying multiple times to overcome it but failing, still holding above a firmly bullish 20 SMA but with technical indicators starting to ease from overbought readings, not enough to indicate an upcoming decline. Below 1.1480, however, chances turn toward the downside short-term with bears trying then to return to the 1.1400 price zone.

Support levels: 1.1480 1.1445 1.1400

Resistance levels: 1.1540 1.1585 1.1620

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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