EUR/USD Price Forecast: Room for a move to 1.14 and beyond

EUR/USD is fading part of Monday’s advance to the 1.1380 region.
Despite the correction, risk-on mood still prevails among traders.

Pablo Piovano FXStreet

The onging recovery in the greenback has prompted some correction in the price action around EUR/USD on Tuesday. In spite of the knee-jerk, the absence of a more significant catalyst to shift investors’ attention to the safe haven universe should keep the underlying upside bias in spot largely unchanged.

On the more macro view, developments from the coronavirus pandemic remain the exclusive driver of the mood in the global markets, as market participants continue to look past the current pick-up in infected cases around the world and stay focused on the economic recovery.

Near-term Outlook

EUR/USD tested and briefly surpassed the area of recent tops around 1.1370 on Monday, coming under some selling pressure soon afterwards. The rebound from the 1.1170 region (June 19/22) remains thus well in place and the next target is now at the 1.14 neighbourhood. Further north comes June’s peak near 1.1420 ahead of YTD highs in levels just shy f 1.1500 the figure (March 9). On the other hand, there is an interim support at the Fibo level at 1.1186 ahead of the more relevant 1.1170/65 band. A breach of this support band should expose a deeper pullback to, initially, the 55-day SMA at 1.1116 ahead of the always-critical 200-day SMA, today at 1.1050.

Author

Pablo Piovano

FXStreet

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

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