The EUR/USD pair keeps pushing higher this Monday, up to 1.1483 so far today, its highest since October 2015. The dollar extends its negative trend ever since the day started, although movements across the board are limited.
View the Live chart of the EUR/USD
The release of European PMIs showed that German output advanced to a three months high, up to 51.8 in April from a previous estimate of 51.9. The EU manufacturing activity also rose modestly, up to 51.7 from previous 51.5, while French figures fell below initially estimated, down to 48.0. In general, the readings show a tepid kick start of the second quarter in the EU.
Later on today, the US will release its own manufacturing figures, whilst a couple of FED's members are scheduled to speak, alongside with ECB's Draghi, none of them expected to bring something new to the table.
From a technical point of view, the 4 hours chart shows that the bullish tone persists, given that the price consolidates near the high, while the RSI indicator heads north around 76, and the Momentum indicator is beginning to ease, but remains within overbought territory. In the same chart, the 20 SMA has accelerated its advance beyond the 100 and 200 SMAs, and currently stands at 1.1380.
The current price zone is a major long term resistance, and a strong battle between bears and bulls is going on in here. Yet further gains are now seen towards 1.1500, with a break beyond this last probably triggering a quick spike up to the 1.1540 region. The immediate support is the daily low at 1.1447, followed by 1.1410, and the mentioned 1.1380 level. This last should attract some buying interest if reached, and send the pair back above the 1.1400 figure.
Latest updates on the EUR/USD Forecast
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