EUR/USD Daily Price Forecast – The Euro Pair Sustained Near The Upper Vicinity Of The Bollinger BandsThe Euro pair showed some definite signs of uptrend despite Trump’s threat preluding another trade war.
After sustaining in the consolidation phase during yesterday’s North American trading session, the cable started with a slight decline from 1.1266 level in the morning session. The EUR/USD touched the day’s then low of 1.1256 level. The pair, however, rose later breaching the strong resistance of 1.1270 level.
Asian equities had opened up low in the morning after US President Trump threatened EU on imposing tariff duties on many of the European goods. Investors remained unnerved amid fears of a global economic slowdown.
Until this point, the EUR/USD appeared unaffected on EU-US worries.
Key EUR/USD Influencing Events Lined Up For The Day:
The European Central Bank (ECB) will broadcast if any changes in the interest rate of the central bank. Interest rates are a very crucial parameter to develop a hawkish/dovish stance on the economy. Last time, ECB kept the interest rates unchanged, and the market expects the same thing happen this time too.
The European Central Bank will announce the deposit rate. The Market analysts estimates are in-line to the prior numbers with -0.4 percent.
The President of ECB will deliver the Monetary Policy Statement and Press Conference for the EU zone. In his last speech, he had alluded of a delay in interest rate hikes.
The US Department of Labor will publish the Consumer Price Index (CPI) excluding Food & Energy (YoY) & (MoM) for March. Due to the volatility in the food and energy prices, they remain exempt. The consensus expectations are in-line with the previous (YoY) CPI of 2.1 percent while for the (MoM) CPI to rise with 0.1 percent.
The European Council will conduct a conference in Brussels to discuss over Brexit. The Heads of State and Government of 27 European Union member states will attend the meeting. The members may vote or reject for an extension up to June for ratification of Brexit deal. If there are upvotes for the extension, then the UK will participate in the Parliamentary elections of EU. Brexit’s extension might have a positive impact on the EUR.
The EUR/USD traded above the 21-day Simple Moving Average (SMA), 55-day SMA, 100-day SMA, and 200-day SMA showing bullish aspect in the future movements of the pair. The pair remained in the upper bound of the Bollinger Band for most of the Asian trading session except a small correction around 09:00 GMT signaling a sustained uptrend. The pair is heading to hit the sound resistance level of 1.1284.