EUR/USD Forecast: Mildly bullish in the near-term

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1832

Coronavirus concerns and the US presidential election to remain in the spotlight.
Financial markets to continue to seesaw between covid concerns and vaccine hopes.
EUR/USD is technically neutral-to-bullish could advance towards 1.1920.

The EUR/USD pair finished the week with losses around 1.1830, although up on Friday for a second consecutive day. Equities rallied, underpinning the demand for the shared currency, while the dollar was hit by dismal US data and the announcement of restrictive measures in some states. The preliminary estimate of the US November Michigan Consumer Sentiment Index printed at 77, below the 82 expected and the previous 81.8. Meanwhile, coronavirus outbreaks across the US have led several cities and states to announce curfews and temporal lockdowns.

The macroeconomic calendar will remain light on Monday, as no relevant data will come from Europe and the US. Instead, the market’s sentiment will likely continue seesawing between rising coronavirus cases and hopes for a vaccine/more stimulus. Also, speculative interest will be looking for fresh clues on definitions of the tumultuous US presidential election.

EUR/USD short-term technical outlook

According to the daily chart, the EUR/USD pair is neutral-to-bullish, as it managed to hold above its 20 DMA throughout the week, while the larger moving averages advance below the shorter one. Technical indicators are around their midlines, with modest upward slopes. For the near-term, the 4-hour chart indicates that the risk is skewed to the upside, as the pair is developing above all of its moving averages, as technical indicators advance within positive levels.

Support levels: 1.1770 1.1725 1.1680

Resistance levels: 1.1840 1.1885 1.1920

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 treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.