EUR/USD Forecast: Bulls hesitate around 1.0800
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFEREUR/USD Current price: 1.0797
- United States markets will remain closed amid the celebration of the Independence Day.
- Downbeat Germany Factory Orders limit the bullish potential of the Euro.
- EUR/USD battles around 1.0800, needs to overcome the weekly high at 1.0816.
The EUR/USD pair holds on to recent gains, trading around the 1.0800 mark mid-Thursday. Investors kept selling the US Dollar throughout the European session, although at a slower pace as time went by amid renewed hopes of an upcoming interest rate cut in the United States (US). The Federal Reserve (Fed) quick-started the year anticipating three potential 25 basis point (bps) rate cuts this year, but as inflation picked up in the first quarter, policymakers backed up.
Chairman Jerome Powell became increasingly hawkish, and the odds for rate cuts diluted, down to the point that market participants believed the central bank would go for just one rate cut in 2024. However, things seem to be taking a turn. Financial markets took Fed’s Powell latest words with more optimism and are now hoping a rate cut will come in September. As a result, the USD turned lower.
Data-wise, Germany published May Factory Orders, which fell 1.6% MoM, much worse than anticipated and limiting the Euro’s bullish scope. The upcoming American session is meant to be a quiet one, as US markets will remain closed amid the Independence Day holiday.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows it battles around converging 100 and 200 Simple Moving Averages (SMAs), while the 20 SMA maintains its bearish slope far below the current level. Technical indicators, in the meantime, head north within positive levels, although with limited momentum as EUR/USD trades below the weekly high at 1.816. Once the pair clears this area, the chances of a firmer rally should increase.
In the near term, and according to the 4-hour chart, the upward strength has eased, but the overall picture is bullish. EUR/USD trades above a flat 200 SMA, which provides near-term support at around 1.0785. The 20 SMA eased, but keeps heading higher below the current level, after surpassing a directionless 100 SMA. Finally, technical indicators offer uneven slopes near overbought readings, without suggesting an upcoming slide.
Support levels: 1.0740 1.0700 1.0665
Resistance levels: 1.0815 1.0850 1.0880
EUR/USD Current price: 1.0797
- United States markets will remain closed amid the celebration of the Independence Day.
- Downbeat Germany Factory Orders limit the bullish potential of the Euro.
- EUR/USD battles around 1.0800, needs to overcome the weekly high at 1.0816.
The EUR/USD pair holds on to recent gains, trading around the 1.0800 mark mid-Thursday. Investors kept selling the US Dollar throughout the European session, although at a slower pace as time went by amid renewed hopes of an upcoming interest rate cut in the United States (US). The Federal Reserve (Fed) quick-started the year anticipating three potential 25 basis point (bps) rate cuts this year, but as inflation picked up in the first quarter, policymakers backed up.
Chairman Jerome Powell became increasingly hawkish, and the odds for rate cuts diluted, down to the point that market participants believed the central bank would go for just one rate cut in 2024. However, things seem to be taking a turn. Financial markets took Fed’s Powell latest words with more optimism and are now hoping a rate cut will come in September. As a result, the USD turned lower.
Data-wise, Germany published May Factory Orders, which fell 1.6% MoM, much worse than anticipated and limiting the Euro’s bullish scope. The upcoming American session is meant to be a quiet one, as US markets will remain closed amid the Independence Day holiday.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows it battles around converging 100 and 200 Simple Moving Averages (SMAs), while the 20 SMA maintains its bearish slope far below the current level. Technical indicators, in the meantime, head north within positive levels, although with limited momentum as EUR/USD trades below the weekly high at 1.816. Once the pair clears this area, the chances of a firmer rally should increase.
In the near term, and according to the 4-hour chart, the upward strength has eased, but the overall picture is bullish. EUR/USD trades above a flat 200 SMA, which provides near-term support at around 1.0785. The 20 SMA eased, but keeps heading higher below the current level, after surpassing a directionless 100 SMA. Finally, technical indicators offer uneven slopes near overbought readings, without suggesting an upcoming slide.
Support levels: 1.0740 1.0700 1.0665
Resistance levels: 1.0815 1.0850 1.0880
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.