EUR/USD Forecast: Dollar suffers from dismal data, more stimulus

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0928

Fed Chief Powell announced additional easing, confident economy would rebound.
The coronavirus crisis continues to develop, with no economic comeback at sight.
EUR/USD at its highest in a week, but it’s all about the greenback.

The American dollar tumbled this Thursday, as investors rushed into high-yielding equities. The EUR/USD pair finally woke up and advanced to 1.0951, its highest in a week, after the US Federal Reserve announced it had taken additional easing measures through a plan to provide $2.3 trillion in loans to support the economy. Chief Powell spoke afterwards, and his comments were read as hawkish. Following Initial Jobless Claims soaring to 6606K in the week ended March 3, Powell said that the speed towards very high unemployment is “alarming,” although he added it will be temporary. He then added that the economic rebound after the ongoing coronavirus crisis “can be robust.”

Another negative factor for the greenback was the preliminary estimate of the April Michigan Consumer Sentiment Index, which plummeted to 71 from 89.1 in March. Meanwhile, the coronavirus pandemic is nowhere close to an end. Despite some modest improvements in specific numbers, the crisis continues, and there are no clear plans to lift lock-downs that keep one-third of the world’s population at home. Good Friday will keep most major markets closed in the last day of the week, although the US will publish March inflation figures.

EUR/USD short-term technical outlook

The EUR/USD pair neared the 38.2% retracement of its latest daily advance at 1.0950, the immediate resistance. The bullish potential seems limited, as the market has no real reasons to buy the shared currency, with gains always related to the dollar’s weakness. In the 4-hour chart, the pair offers a neutral-to-bullish stance, as the pair has advanced above its 20 and 100 SMA, which anyway lack directional strength. The 200 SMA is also flat, although above the current level. The Momentum indicator in the mentioned time-frame remains horizontal just above its 100 level, while the RSI eases, but holds around 60.

Support levels: 1.0900 1.0865 1.0830

Resistance levels: 1.0950 1.0990 1.1025

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.