EUR/USD Daily Price Forecast – The Fiber Bulls Add Power Ahead of Downbeat US Data

In the last trading session, the Fiber had attempted to uplift from the lowest vicinities near 1.1130 levels. Today, in the Asian session, the Euro pair remains slightly aroused near 1.1157 levels. On Friday, the pair had jumped on the back of weak reports. The greenback had then fallen over 0.39 percent despite upbeat US Q1 GDP figures.

In the Asian trading session, after remaining silent for a while, the pair started upsurging. The EUR/USD pair elevated from 1.1148 levels reaching near 1.1160 levels. This rise again gets discounted to the US Dollar Index plunge earlier the day. There are quite a few bearish US events lined up for the day. The market was incurring the upcoming losses in advance on that front.

Meanwhile, Sunday Spanish elections reported that the PSOE (Partido Socialista Obrero Español) party retained the ruling position. This socialist party has acquired 123 Parliamentary seats and is looking for a coalition to work in the majority. This news develops optimistic wrapping around the political conditions in the EMU region. Perhaps, a green signal for the EUR/USD pair to rebound losses.

EUR/USD Significant Events

EUR Specific Events

08:00 GMT

Italy March PPI MoM and YoY

The market stays bearish on the YoY figures and bullish on the MoM change.

09:00 GMT

EMU April Business Climate

The consensus hopes for a drop in the EMU figures this time. The street analysts expect the numbers to come around 0.50 to the prior 0.53.

USD Specific Events

12:30 GMT

US March MoM Personal Income

The consensus estimates the figures to record around 0.2 percent higher than the previous 0.2 percent.

US Feb Core Personal Consumption Expenditures – Price Index (MoM & YoY)

The market expects the MoM PCE Index to record in-line with the prior 0.1 percent. However, there is a bearish stance on the YoY numbers, anticipating a 0.1 percent decline, this time.

US Feb Personal Spending

The Index had recorded 0.1 percent in January 2019.

Technical Analysis

The EUR/USD pair was trading at its one-year lower vicinity near 1.1159 levels. The pair was heading up straight into the red Ichimoku clouds which may even act as a resistance level. Though both the base line and the conversion line stood below the pair, the base line was at a lower level to the conversion line. This position provides some fresh bulls in play. The Relative Strength Index (RSI) reveals some strong momentum in the currency pair drifting near 58.6 levels. On the upside, two resistance lines near 1.1228 and 1.1260 levels await the Fiber.