|

EUR/USD Price Forecast: Door open for further upside

  • EUR/USD extends the uptrend and approaches 1.1150.
  • The rebound is fuelled by increasing dollar weakness and risk-on mood.

EUR/USD is prolonging he upside for the fifth consecutive session on Monday, always sustained by the moderate correction lower in the greenback and the favourable sentiment in the risk-associated universe.

Other than the renewed selling bias in the buck, the euro remains supported by the relentless re-opening of economies in the Old Continent and the gradual return to some sort of normality, as concerns around the coronavirus pandemic continues to ebb.

Moving forward, final PMIs are due along with the always-relevant US ISM Manufacturing. Later in the week, the focus of attention is expected to be on the ECB event and results from the US labour market (ADP and NFP).

Near-term Price Outlook

EUR/USD keeps its march north well and sound for the time being. The surpass of the 1.1150 region (late march tops) should open the door to a visit to the interim hurdle at 1.1187 (Fibo retracement of the 2017-2018 rally) ahead of the 1.1200 yardstick and the December’s high near 1.1240. In the broader picture, as long as the 200-day SMA, today at 1.1010, holds the downside, the outlook on the pair is expected to remain constructive. On the downside, the resumption of the selling bias is seen meeting moderate contention in the 1.1010/20 band, where coincide the 200-day SMA and the May 1 highs. In addition, a near-term pullback could be shaping up as the market gets closer to the overbought territory, as per the daily RSI.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s  irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest 

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.