EUR/USD Price Forecast: Buyers patiently awaiting to add longs

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1815

EU inflation eased in January, granting no action from the European Central Bank.
US President Donald Trump signed a bill to end the partial government shutdown.
EUR/USD maintains its near-term neutral bias ahead of a fresh catalyst.

The EUR/USD pair hovers around its daily opening, a handful of pips above the 1.1800 mark, in the American session on Wednesday, pretty much flat on the day. The pair appears to have found some stability after the previous two volatile weeks and now awaits a fresh directional catalyst.

Headlines affecting financial markets today are quite limited. Late on Tuesday, United States (US) President Donald Trump signed a bill that ended the partial US government shutdown. Nevertheless, US official data scheduled for this week is unlikely to be released in time.

Private figures, however, maintain the rhythm. ADP just released the January Employment Change survey, which showed that the private sector added measly 22K new jobs in the month, below the previous revised figure of 37K and missing the expected 48K. Despite discouraging, the news had no relevant impact on the EUR/USD.

Earlier in the day, Eurostat reported that the EU Harmonized Index of Consumer Prices (HICP) rose 1.7% in the year to January, as expected, but eased from the 1.9% posted in December. The core HICP, which excludes volatile components such as food or energy, rose by 2.3% as anticipated, matching the previous month’s figure. The figures came ahead of the European Central Bank (ECB) monetary policy announcement on Thursday, and pretty much confirm EU policymakers will maintain the status quo.

EUR/USD short-term technical outlook

The near-term picture for EUR/USD reflects the ongoing pause. In the 4-hour chart, the pair trades within a limited range, with a bearish 20-period Simple Moving Average (SMA) heading lower just above the current level. At the same time, EUR/USD remains above the 100 and 200 SMAs, which keep the broader uptrend alive. The 20 SMA at 1.1833 caps near-term upticks, while the 100 SMA at around 1.1773 provides near-term support. At the same time, the Momentum indicator holds flat just below its neutral line while the Relative Strength Index (RSI) indicator consolidates at around 43, reflecting the absence of directional interest.

In the daily chart, EUR/USD trades above all its moving averages, with the 20-day SMA rising above the 100- and 200-day SMAs, underscoring a bullish bias. The 20-day SMA at 1.1758 offers additional support. Finally, the Momentum indicator turns higher above its midline, signaling strengthening buying pressure, while the RSI indicator is also picking up, yet at a slower pace and currently at 53.

(The technical analysis of this story was written with the help of an AI tool.)

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.

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