EUR/USD Daily Price Forecast – The Fiber Bulls Aims the 61.8% Fibonacci Ahead of German Factory Data

The EUR/USD pair was heading to test the sound 1.1210 resistance level in the morning session. Last day’s higher-than-expected EMU PMI figures had helped the Euro pair to uplift from the 1.1191 low levels. However, things may follow same fashion even today as the calendar remains lighter on Euro-specific significant events.

The escalating trade tensions seem to limit the gains. The US Trade Representative accuses China of backtracking on their commitments in trade settlement. Reports suggested that Chinese officials showed denial to accept the terms which got earlier negotiated. And, President Trump had tweeted on Sunday, following this behavior of the Chinese officials. He threatened to almost double the tariff duties on the Chinese goods. The sudden uncertainty in the US-Sino Trade talks might have a substantial impact on the global economy.

On the other side of the equation, the US Dollar Index continued to slaughter under the same trade tensions. The Greenback computed against the six rivals was touching the floor near 97.43 levels in the Asian session. The Index had opened on Tuesday morning near 97.51 levels and remained stumbled thereon. A fall in the Greenback always adds to a rise in the EUR/USD. Somehow, this time, the pair stands reluctant to move up amid the uprising global cues.

EUR/USD Influential Events

Over to the events front, Investors are looking forward to the German March MoM Factory Orders. The Street analysts stand bullish on this German factory report. This time, they expect a positive 1.5 percent in place of the previous negative 4.2 percent. On the USD-specific events, there are no upcoming reports to get published. However, the Fed’s Randal Keith Quarles will give his opinion on the US economy at around 15:35 GMT.

In the meanwhile, MINEFA will release the trade reports of France. Notably, the March France Trade Balance is anticipated lesser numbers this time. The market expects a negative €4.5 Billion in comparison to the prior negative €4.0 Billion. These events are, nevertheless, considered to impact less on the pair’s movements.

Technical Analysis

The Fiber crossed the 100-days SMA and moved upwards in the upper vicinity of the Bollinger Bands (BB). The EUR/USD pair stood firm above the healthy 200-days SMA, suggesting bullish swing high. The Relative Strength Index (RSI) Indicated 64.6 levels, showing slight investor interest. The BB remained contracted amid low volatility.

However, the bands may expand in the upcoming sessions following positive economic events. The pair may find negative traction on hitting the healthy 1.1219 resistance levels. On the support side, the Fiber had managed to bounce off from the 23.6% Fibo Retracement level. The pair clinches within the gap of 38.2% and 61.8% Fibo Retracement level.