EUR/USD Daily Price Forecast – The Euro Bulls Heading Towards 1.1262 Resistance Ahead of FOMC Data

During the Asian trading session, the EUR/USD pair continued the upward rally that started on April 26. Investors seem to regain confidence in the Fiber. After remaining consolidated for quite a while, in the opening hours, the EUR/USD marked fresh highs near 1.1231 levels. The pair was successful in breaching the robust resistance line near 1.1230 levels.

The plunge in the US Dollar Index remains the major reason for the uptrend in the EUR/USD pair. The US Dollar Index that computes the Greenback against the six significant rivals slipped 10 pips today. There are few high volatility events lined up for today which may put further pressure on the US Dollar Index.

Yesterday’s, upbeat EMU GDP figures and fantastic German Inflation numbers helped the Fiber further cure its earlier wounds.    

A few moments ago,  the Vice President of European Central Bank, Luis De Guindos, addressed over the MPC Interest Rates. He reiterated that low ECB rates would sustain for a more extended period.

EUR/USD Impacting Events

On account of Labour Day, the European businesses will remain closed today. However, there are numerous USD events aimed to move the pair during the day.

USD Specific Events

Below listed are the US reports for April.

18:00 GMT

Fed Rates Decision (High Volatile)

The US President Trump wants a one point rate cut, comparing the US with its counterpart China. The President also tweeted that such a quantitative easing would help the Greenback to “go up like a rocket” But, the Federal Reserve officials remain stubborn about keeping the rates unchanged. The Market seems already discounted the bearish sentiment, glancing the slumping the USD Index.

14:00 GMT

ISM Manufacturing PMI (High Volatile)

The street analysts anticipate the index to come around 55.0 points to the prior 55.3 points

12:15 GMT

ADP Employment Change (Mid Volatile)

The market analysts estimate the US employment figures to come near 180K from the previous 129K

13:45 GMT

Markit Manufacturing PMI (Mid Volatile)

The consensus estimates remain bearish over the numbers. They expect a 2.1 percent fall  

14:00 GMT

ISM Prices Paid (Mid Volatile)

The consensus group takes on a bullish stance on the report.

Technical Analysis

The EUR/USD pair was trading well above most of the significant Simple Moving Averages (SMA), alluding bullish trend. The 50-days SMA was hovering lower to the other major 200-days and 100-days. Hence, there is a higher probability of upward push in the near term than in the longer term. Since the last few sessions, the fiber maintained remaining in the upper vicinity of the Bollinger Bands (BB). The EUR/USD pair kept touching the upper boundary of Bollinger Band on an hourly time frame, suggesting a strong bullish pattern. The Relative Strength Index (RSI) seemed to stall near 69.37 levels, showing investor interest.

Nevertheless, the Investors remain pretty happy seeing the pair recovering from its all-time low values. The Fiber may continue to stay in the buyer’s favorite list.