EUR/USD Daily Price Forecast – The Euro Pair Remain Consolidated Near 1.1273/80 Levels.

The EUR/USD extended yesterday’s consolidation phase into Friday’s trading session. The pair remained sustained in the range between 1.1273 and 1.1280 levels.

The world economy is currently getting undermined on the grounds of escalating geopolitical tensions arising out of FOMC meeting minutes and latest Brexit updates.

The greenback stayed weaker after the FOMC minutes revealed some dovish stance on economic growth.

Last day, the EU officials in the EU Summit for Brexit declared a flexible extension in the Brexit until October 31. Flexible extension meaning the UK can even exit before the deadline if they can ratify a good deal before the specified time. By providing a flextension, the EU makes it clear that they want things to wrap up at the earliest possible. If the UK fails to ratify deal before May 23, then there is a possibility of the UK taking part in the EU elections.

Key EUR/USD Influencing Events

06:00 GMT (Highly volatile)

The Statistisches Bundesamt Deutschland will publish the following March index for Germany:

• The Harmonized Index of Consumer Prices (YoY) which is crucial in measuring the price stability in the EU zone. The consensus estimates are in-line to the prior index with 1.4 percent.
• The Consumer Price Index (YoY), Consumer Price Index (MoM) and Harmonized Index of Consumer Prices(HICP) (MoM). The analyst estimates the YoY CPI, the MoM CPI and the HICP to come in-line with the previous 1.3 percent, 0.4 percent, and 0.5 percent respectively.

12:30 GMT (Mid volatile)

The Department of Labor will announce:

• The March Producer Price Index ex Food & Energy (YoY). The index will consider commodities other than food and energy due to their high volatility in prices. The market analysts are predicting the numbers to reduce by 0.1 percent than the previous 2.5  percent.
• The weekly Initial Jobless Claims from April 5 which will calculate the total number of people who are new in availing unemployment benefits. The consensus estimates the claims to come around 211K than the previous 202K.
• The Counting Jobless Claims from March 29, which will compute the number of people unemployed and existing holders unemployment benefit. The analyst expects the readings to lift at 1.738 million.

Technical Analysis

The Euro pair followed a range bound approach in the Asian trading session. The EUR/USD pair sustained within the range bracket of 1.1255/1.1285 levels. The EUR/USD traded above the Ichimoku clouds, the base line, and the conversion line revealing some strong bullish signals for the future movements of the pair. The Bollinger bands remained contracted to show less volatility. The EUR/USD pair drifted around the upper vicinity showing possibilities for a bullish trend.