EUR/USD Price Forecast: Buyers paused ahead of fresh clues

EUR/USD Current price: 1.1261

• The Eurozone confirmed that the April annual HICP rose 2.2%, as previously estimated.
• Multiple Federal Reserve speakers will hit the wires during American trading hours.
• EUR/USD maintains a positive bias amid broad US Dollar weakness.

The US Dollar (USD) started the week on the back foot, down against its major rivals at the weekly opening. The EUR/USD pair traded as high as 1.1284 during European hours, holding nearby early in the American session. The USD turned south after Moody’s Investors Service, a rating company, downgraded the United States (US) sovereign credit rating from Aaa to Aa1.

Stock markets edged lower, with Asian and European indexes reflecting renewed concerns about the US economic health. Wall Street futures, however, bounced from their intraday lows, still holding on to the red.

Data-wise, the Eurozone (EU) confirmed that the Harmonized Index of Consumer Prices (HICP) rose by 2.2% in the year to April, as previously estimated. The US macroeconomic calendar has nothing relevant to offer, although multiple Federal Reserve (Fed) officials will be on the wires.

EUR/USD short-term technical outlook

The daily chart for the EUR/USD pair shows it trades near its intraday high, testing a mildly bearish 20 Simple Moving Average (SMA) before pausing its advance. Technical indicators, in the meantime, gained upward traction, but only the Relative Strength Index (RSI) advances above its midline. Finally, the 100 and 200 SMAs remain far below the current level with modest upward slopes, failing to provide fresh clues but still indicating buyers retain control.

The 4-hour chart shows that the pair trades above its 20 and 200 SMAs, with a lack of clear directional strength, while a flat 100 SMA caps the upside. Meanwhile, technical indicators have turned flat within positive levels, suggesting buyers paused ahead of fresher clues.

Support levels: 1.1245 1.1200 1.1160

Resistance levels: 1.1290 1.1335 1.1370