EUR/USD Forecast: Shy bounce from near 1.2000 maintains the risk skewed to the downside

EUR/USD Current Price: 1.2024

  • The greenback is firmer against most major rivals as investors eye US recovery.
  • US Treasury yields trimmed early intraday gains, hold within familiar levels.
  • EUR/USD has recovered from around 1.2000, but its bullish potential is limited.

The EUR/USD pair fell to 1.1998 on the back of renewed dollar’s strength, now bouncing from the level but still trading in the red.  The dollar is firmer across the board,  although markets are still struggling for a certain direction. Risk appetite prevailed for most of the European session but took a turn to the worse ahead of the US opening, dragging Wall Street’s futures lower. US Treasury yields started the day with a firm footing but quickly trimmed their intraday gains.

The American currency advances against high-yielding rivals but eases against those assets considered safe-haven. The EU macroeconomic calendar had nothing to offer, while the US has just published the March Goods Trade Balance, which posted a deficit of $ 91.6 billion. Later today, the country will release March Factory Orders and the ISM-NY Business Conditions Index for April.

EUR/USD short-term technical outlook

The EUR/USD pair trades in the 1.2020 price zone, meeting sellers around its 100 SMA, while it holds below a bearish 20 SMA. Technical indicators bounced from near oversold readings but remain well into negative levels, with limited bullish strength. The pair has a static resistance level at 1.2045, the 23.6% retracement of its latest bullish run, with better chances of advancing once above it.

Support levels:  1.1990 1.1950 1.1910

Resistance levels: 1.2045 1.2090 1.2130

View Live Chart for the EUR/USD

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