- Risk-on supports the pair ahead of second-tier data release.
- 1.1370 seems important resistances with 1.1280 acting as nearby support to watch during pullback.
EUR/USD is on bids around 1.1320 ahead of European open on Friday. The EUR is recovering yesterday’s losses as traders prefer risk-assets over the US Dollar (USD) on recently positive Brexit reports. Adding to the sentiment were comments from the US President Donald Trump that signals US-China trade solution in next 3-4 weeks. Upcoming details from Eurozone and the US could direct near-term market moves while risk sentiment might keep playing background music.
The EUR/USD pair rose early Friday as markets turned to risk-on after the British members of parliament (MPs) voted for delaying the Brexit deadline from March 29. The sentiment got additional support after President Trump said talks with China are progressing and will take nearly 3-4 for making any decision whereas China’s Xinhua news reported both the economies made substantive progress on trade talks.
Traders now await second-tier data from the Eurozone and the US that start with Final reading of February month Eurozone consumer price index (CPI). The Eurozone CPI may remain unchanged at 1.5% on YoY basis while likely confirming 1.0% Core CPI figure on a yearly basis. However, the monthly figure of CPI might increase from -1.0% flash version to +0.3%.
In the case of the US, March month numbers for NY empire state manufacturing index and Michigan consumer sentiment index join hands with monthly industrial production release for February month. All of the scheduled US data are expected to increase. The manufacturing and consumer sentiment indices could rise to 10.0 and 95.3 versus 8.8 and 93.8 respective priors whereas industrial production growth might advance +0.4% from -0.3% earlier contraction.
While the economics may favor the USD over the EUR, additional improvements in market risk-taking can help the EUR/USD pair to cross 1.1345/50 upside barrier.
EUR/USD Technical Analysis
Given the buyers’ repeated failures to surpass 1.1345/50 area since late-February, an uptick beyond the same might not hesitate to fuel the pair towards 1.1370 resistance-confluence comprising 100-day simple moving average (SMA) and a descending trend-line since January 31.
Alternatively, 1.1280 and 1.1250 may offer immediate support to the pair ahead of highlighting 1.1215 as supports.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.