EUD/USD Daily Price Forecast – Pair Took Support At 78.5% Fib Ahead Of ECB Prez “Super Mario’s” Speech

The EUR/USD pair was seen to extend yesterday’s losses at the start of the day as dollar bulls rose. The pair reverted back at 2:45 GMT from 1.1252 reaching 1.1260 level. This pair had last traded near this lowest vicinity on March 13.

USD Index jumped new highs reaching 97.00 levels today morning. The US Dollar Index was seen recovering from last week’s losses putting more selling pressure on the EUR/USD. The greenback measuring index can roll back at any point in time amidst global economic sluggishness and Brexit chaos.

At the time of writing this article (06:55 GMT), the pair was trading at 1.1263 level.

Upcoming EUR/USD Impacting Key Events

By 07:45 GMT, (Low Volatile Event)

• National Institue of Statistics and Economics (INSEE) will release the February Producer Price Index (PPI) (MoM) of France. This index is a good indicator to scrutinize the status of commodity inflation.
• INSEE will also release the March Consumer Confidence Index for France. The Analysts expect a 1 percent upside on the index prior to the previously recorded 95 points.

By 08:00 GMT, (Highly Volatile Event)

European Central Bank’s (ECB) President Mario Draghi will put down his outlook on Euro’s trend in the short term. This event is expected to have a huge impact on the EUR/USD pair.

By 08:45 GMT, (Medium Volatile Event)

ECB’s Executive Board Member Peter Praet will speak on behalf of the “normalizing of monetary policy” panel.

By 09:00 GMT, (Low Volatile Event)

Istituto nazionale di statistica will release the March Consumer Confidence Index and Business Confidence Index for Italy. Analysts take on a bearish stance on the indexes. The consensus estimates the former index to come around 112.0 as compared to the previous 112.4. Analysts believe the Business Confidence to record near 101.3 points prior to the previous index of 101.7 points.

By 09:00 GMT, (Medium Volatile Event)

The Centre for European Economic Research will release the March ZEW Survey Expectations for Switzerland.

By 19:30 GMT, (Highly Volatile Event)

UK Parliamentarians will vote on May’s deal Brexit. This event needs a closer watch as the outcome of today’s voting session is highly significant from EUR/USD front. If the voting is against the May’s deal for a Brexit, then the odds of a Hard Brexit will escalate exponentially.

Technical Overview

The EUR/USD pair bounced off the 78.6% Fibonacci Retracement level shows some signals for a slight upward movement. The pair was trading at the week’s low level in the morning hours. We expect the EUR/USD pair may see more upside with probable favoring events. The Simple Moving Average (SMA) for the major days lied above the last traded pair level suggesting a bearish stance. The consecutive creation of new higher support and resistance points are good signs for upliftment in the EUR/USD as the day approaches closing.