EUR/USD Forecast: Advancing within range
|EUR/USD Current Price: 1.0856
- Sentiment improves ahead of the US opening, tensions remain in the background.
- US inflation resulted worse than anticipated in April, down to 0.3% YoY.
- EUR/USD mildly bullish in the short-term, heading towards 1.0900.
The EUR/USD pair bottomed at 1.0784 this Tuesday, as concerns about a second wave of coronavirus contagions and tensions between the US and China kept the mood down. China reported new COVID-19 cases in the Wuhan region, where the pandemic started. Also, US President Donald Trump said that he opposes renegotiating the phase one of the trade deal with China, while he accused China again for being responsible for the pandemic.
The dollar, however, came under selling pressure mid-European session, amid bouncing equities leading to a recovery in the market’s mood. The EUR/USD pair recovered to the 1.0850 price zone, ahead of US inflation data. The figures were worse than expected, as the country’s annual inflation was up by just 0.3% in April, while the core reading came in at -0.4%, also missing the market’s forecast. There was no reaction to the news.
EUR/USD short-term technical outlook
The EUR/USD pair is trading near its daily high at 1.0862, with a neutral-to-bullish technical stance in the short-term. The 4-hour chart shows that it has surpassed its 20 and 100 SMA, which anyway remain flat, as the pair trades within familiar levels. Technical indicators are crossing their midlines into positive territory, supporting additional gains without confirming them. The pair could catch additional momentum on a break above 1.0875, the immediate resistance and this week’s high.
Support levels: 1.0820 1.0790 1.0760
Resistance levels: 1.0875 1.0910 1.0940
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