EUR/USD Daily Price Forecast – The Fiber Bears may Take Control Post Release of U.S. Unemployment DataThe EUR/USD pair continues to stay in the recovery state since May 1. However, the pair may lose grip ahead of the significant events scheduled for the day.
The pair was left subdued in the lowest corners of 1.1150 levels during the month start. Quite pleasingly, the pair now maintains right consistency around 1.1200 levels.
The EUR/USD pair initiated today’s trading session near 1.1194 levels. The pair had suffered a slight descending effect post-release of Chinese CPI, and PPI reports. Chinese April YoY CPI score got reported in-line with the market expectation. Following this event, the Fiber had slipped to 1.1186 levels but later recovered over positive April PPI figures.
In the meantime, the market concentrates over the rising U.S.-China trade disputes. However, the investors set in a positive tone amid talk resumptions. The Chinese officials are planning for a Washington visit to continue negotiations with the U.S. counterpart.
On the Brexit front, there appears some light at the end of the tunnel. UK PM Theresa May might attempt for the fourth time to unlock the Brexit impasse. Reports suggested that she will put maximum possible efforts to make things happen before the E.U. elections.
Over to the Greenback, the index continues to trade near 97.50 levels. The U.S. Dollar Index, however, remains sensitive to any update on the trade talks.
EUR/USD Impacting Events
A few minutes ago, the Spain March Industrial Output data displayed a strong negative 3.1% over the estimates of negative 1.3%.
However, Investors develop a keen interest around USD-specific events, especially the U.S. March Trade Balance. The market stays bearish over this trade figure. They expect the number to come around $-50.2 Billion over the $-49.4 Billion estimates.
U.S. Jobless Claims are the next up in the list for the day. The Consensus estimates the unemployment figures to decrease slightly by around 1% this time. In the meanwhile, about 12:30 GMT, Fed’s Powell will address on the economic outlook of the region.
The 50-days Simple Moving Average (SMA) stood above other significant SMAs, alluding a near term bull call. The pair was hovering above the major SMAs alluding a strong uptrend. The pair may continue to remain range-bound later, getting capped at 1.1219 levels. The Relative Strength Index (RSI) appeared near 50 levels indicating a moderate buying among the traders.
The EUR/USD pair remained in the upper vicinity of the Bollinger Bands, transferring more power to the bulls in the long run. The RSI stood around 52 levels, alluding a moderate buying. The EUR/USD pair finds resistance level near 1.1213 levels and may move upwards to the next 1.1252 resistance levels. On the flipside, the pair may find support near 1.1148 levels.