The EUR/USD pair trades at its highest since late October 2015, having reached 1.1145 late Wednesday, and extending above it at the time of writing. The decline started when FED Dudley's words, indicating that financial conditions have tightened considerably ever since the Central Bank raised rates last December. Data was already suggesting so, and the release of local services PMI, worse-than-expected, fueled the dollar's decline.
But also technical breakouts and triggred stop loss had their part in the nearly 200 pips rally seen in the EUR/USD yesterday, with the pair finally accelerating through the region around 1.0960 which contained the upside ever since mid December.
The macroeconomic calendar will be focused in the UK during the European session, with the BOE's economic policy meeting and no data coming from the EU. The US session will bring the usual weekly unemployment claims, more relevant today ahead of the release of the NFP report, alongside with other minor employment figures.
View the Live chart of the EUR/USD
Given the recent weakness in the greenback due to tepid data, worse-than-expected figures will likely put additional pressure on the USD. From a technical point of view, the 4 hours chart, shows that the price is above its moving averages and yesterday's high, while the technical indicators maintain bullish slopes near overbought readings.
The immediate resistance comes at the 1.1160 region, and further gains beyond it should lead to a test of 1.1200/1.1215, whilst above this last, the rally can extend up to 1.1250. The immediate support on the other hand, stands at 1.1120, with a break below probably indicating a retracement down to the 1.1060 region, where short term buying interest should contain declines.
Latest updates on the EUR/USD Forecast
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