EUR/USD Daily Price Forecast – EUR/USD Continues Uptrend Movement as Risk Appetite Remains High

The latest positive development in the US-China trade war proceedings eased global risk-aversion and prompted some US Dollar profit-taking on Thursday. Adding to this, worse than expected US economic data – housing starts and Philly Fed manufacturing index exerted some additional downward pressure on the greenback and helped the EUR/USD pair to build on overnight modest rebound from the 1.1300 handle, the lowest since late June 2017. The pair touched an intraday high level of 1.1409, albeit lost steam at higher levels. The pair maintained a neutral stance through the Asian session on Friday as market participants now look forward to the final Euro-zone CPI print for some fresh impetus. Meanwhile, the US economic docket features the release of preliminary Michigan Consumer Sentiment index and might provide some short-term trading impetus during the early North-American session on the last trading day of the week.

Investors Cautious Ahead of Today’s US Market Hours before Placing New Long Positions

As of writing this article, EURUSD is trading at 1.1377 down 0.01% on the day, after its attempt to breach the 1.14 handle. Investors are cautiously watching market proceedings with short term bets influencing market momentum as EUR bulls aim for stability above 1.14 handle which is currently offering high level of resistance. The pair looks weak in the four hours price chart and is at risk of heading down to the previous support at 1.13452 if it fails to hold on at or above 1.13690 across today’s European market session. If short term bets remain in favor of EUR bulls across European market hours and US macro data disappoints today as well, the pair could close in range bound pattern around 1.138 to 1.140 price levels.

From a technical perspective, Wednesday’s Doji daily candlestick signaled a possible end of the recent downtrend. However, the pair’s inability to gain any strong follow-through traction now seems to indicate an undefined near-term direction. Hence, it would be prudent to wait for fresh buying to emerge before confirming that the pair might have bottomed out in the near-term. In immediate future, any meaningful up-move beyond the 1.138 handle is likely to confront fresh supply near the 1.1400 to 1.1435 areas (weekly tops). On the flip side a break below the 1.1345 immediate support might again expose the 1.1300 handle, which if broken would turn the pair vulnerable to continue with its well-established bearish trend towards June 2017 congestion zone near the 1.1200 round figure mark.