EUR/USD Forecast: Market players warming up ahead of Fed

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2120

EU Industrial Production improved by more than anticipated in April.
Stock markets are consolidating around Friday’s closing levels.
EUR/USD in recovery mode but lacking directional momentum.

The EUR/USD pair is marginally higher at the beginning of the week, trading above the 1.2100 threshold. Trading across the FX board is limited amid a scarce macroeconomic calendar and as investors prepare for the US Federal Reserve monetary policy decision, to be out on Wednesday.

Stocks markets offer no many clues, as European indexes trade within positive levels, although a handful of points away from their daily openings. US Treasury yields hold near their recent lows, unchanged on a daily basis.

Data wise, the EU published April Industrial Production, which improved 0.8% MoM and 39.3% YoY, much better than anticipated. The US won’t publish macroeconomic data this Monday.

EUR/USD short-term technical outlook

The EUR/USD pair has limited bullish potential, according to intraday technical readings. The 4-hour chart shows that the pair keeps developing below all of its moving averages, with the 20 SMA maintaining its bearish slope and about to cross below the 200 SMA. Technical indicators are recovering from oversold readings, still within negative levels. The pair could resume its decline on a break below 1.2092, the monthly low and the immediate support level.

Support levels: 1.2090 1.2050 1.2010

Resistance levels: 1.2125 1.2160 1.2200

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 hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.