EUR/USD Daily Price Forecast – Bouncing Twice At 1.1305 Support

The EUR/USD had a good start this morning bouncing off from 1.1314 reaching 1.1322 level. From that level at 01:15 GMT, the pair had been plunging touching the lower vicinity of 1.1305 after the speech of Boston Fed President Eric Rosengren. He had proposed to buy more short term treasury bills to bring down long-term interest rates, diminishing the odds of a likely recession. This mitigating words elevated the USD Index from 96.005 to 96.094 and hence pulling back the EUR/USD pair. The pair later took support at 1.1306 level and was in consolidation mode.

At the time of writing this article (07:28 GMT), the pair was trading at around 1.1310 level.

Last night, In the House of Commons, the UK Parliament MPs voted to take over the Brexit process. Now the Parliamentarians have taken control over the Brexit. EUR/USD will hence act in a more weighed manner to the upcoming Brexit updates.

Moments ago, Gfk released the Germany Consumer Confidence Survey for April at 07:00 GMT. This index computes the level of the consumer confidence index in the economic activity of the particular region. The index recorded 10.4, lower than the market expectation of 10.8.

EUR/USD Key Events

France will report its Gross Domestic Product (GDP) QoQ for the fourth fiscal quarter by 07:45 GMT. The consensus estimates the numbers to be in-line with the previously recorded 0.3 percent. In the same time frame, INSEE will report the France Business Climate Index for March. Street analysts expect the index to come at around the same previous level of 103.

Along with these events, Deutsche bank will carry out an auction for the German two-year maturity treasury notes. In this auction, the average yield volatility will be compared with the average measured in the previous auction.

Technical Overview

The EUR/USD pair was trading well above the Exponential Moving Averages (EMA). The pair were seen to move outside the upper bound of Keltner Channel (KC) for sometime reaching day’s fresh high of 1.3218. Despite this breakout, the pair was trading near the lower bound range of the KC and below the EMA. The pair had bounced off the support level of 1.1305 twice until now (07:28 GMT). Considering the pair to lie more to the lower bound range of the KC, a pullback can be expected.