EUR/USD outlook: Upbeat German data lift Euro ahead of US jobs report

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro rose further in European trading on Friday, extending Thursday’s 0.52% rally which left the bear-trap at 1.20 support and shifted near-term focus to the upside.

Upbeat German data on Friday (manufacturing orders surged 29.5% in Mar from 6.4% in Feb) added to bullish near-term stance.

Fresh gains cracked pivotal Fibo barrier at 1.2087 (61.8% of 1.2149/1.1985 pullback) and pressure trendline resistance at 1.2094, with close above these levels to signal an end of corrective phase.

Bullishly aligned daily techs also support the action, but traders await the release of key US jobs data for April, which are expected to provide strong signal.

Forecasts for further increase in US hiring and lower unemployment signal that post-pandemic economic recovery is accelerating that would increase investor risk appetite and further lift the single currency.

Bullish scenario sees acceleration towards recent peak at 1.2149 (Apr 29), with break here to open way for 1.22+ gains.

Conversely, disappointing US figures would deflate risk sentiment and weaken near-term structure for fresh attack at key supports at 1.20/1.1973 (psychological / daily cloud top).

Res: 1.2094; 1.2126; 1.2149; 1.2197
Sup: 1.2067; 1.2047; 1.2033; 1.2000

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.2172
2. R2 1.2122
3. R1 1.2094
PP 1.2043
1. S1 1.2015
2. S2 1.1965
3. S3 1.1937

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD drops below 1.1600 on broad USD strength

EUR/USD stays under bearish pressure and trades at a fresh six-week low below 1.1600 on Tuesday. Despite stronger-than-forecast inflation data from the Eurozone, the pair struggles to stage a rebound as the US Dollar continues to attract safe haven flows amid escalating geopolitical tensions in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold drops below $5,200 on stronger USD, rallying US yields

Gold attracts some intraday selling and falls below $5,200 on Tuesday. The US Dollar climbs to a fresh high since January 20 and turns out to be a key factor exerting downward pressure on the commodity. Meanwhile, the benchmark 10-year US Treasury bond yield rises nearly 2% on the day, putting additional weight on XAU/USD's shoulders.

Crypto Today: Bitcoin, Ethereum, XRP pull back as sentiment remains in extreme market fear

The cryptocurrency market is broadly in the red on Tuesday as the Middle East grapples with an escalating war. Bitcoin (BTC) is in a pullback, trading below $67,000 at the time of writing, and most altcoins follow suit.

Middle East conflict ramps up a gear as energy price spike rips through markets

It’s another risk off day as geopolitical headwinds continue to batter financial markets. Although markets calmed during the US session and US stocks managed to post gains on Monday, this has not fed through to the European session, and stocks and bonds are sharply lower for a second day.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.