EUR/USD Forecast: Euro could face stiff resistance near 1.0830
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 OFFER- EUR/USD continues to move sideways near 1.0800 on Monday.
- Strong resistance seems to have formed at around 1.0830.
- The pair could struggle to find direction ahead of US inflation data on Tuesday.
EUR/USD closed the fourth consecutive day in positive territory on Friday but was virtually unchanged for the week. The pair holds steady at around 1.0800 to start the new week.
The US Dollar (USD) edged lower ahead of the weekend as the Bureau of Labor Statistics (BLS) announced that it revised the monthly Consumer Price Index (CPI) increase for December lower to 0.2% from 0.3%. On Tuesday, the BLS will release CPI figures for January and investors could refrain from taking large positions ahead of the inflation report.
Over the weekend, European Central Bank ECB Governing Council member Fabio Panetta argued that the time for an interest rate cut was fast approaching. "Any speculation on the exact timing of monetary easing would be a sterile exercise," Panetta added. These comments, however, failed to trigger a noticeable reaction in EUR/USD during the weekly opening.
The US economic docket will not feature high-impact data releases on Monday. Meanwhile, US stock index futures trade flat in the early European session, pointing to a neutral risk mood.
Later in the day, several Federal Reserve (Fed) policymakers are scheduled to speak. At this point, markets are convinced that there won't be a rate reduction in March and comments from officials are unlikely to influence the market positioning in a significant way.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart climbed above 50, pointing to a bullish tilt in the short-term outlook. EUR/USD, however, could have a difficult time clearing 1.0830, where the Fibonacci 23.6% retracement level of the latest downtrend and the 200-day Simple Moving Average (SMA) align. A daily close above that level could attract technical buyers and open the door for an extended recovery toward 1.0880 (Fibonacci 38.2% retracement) and 1.0900 (psychological level, 200-period SMA on the 4-hour chart).
On the downside, interim support is located at 1.0770 (20-period SMA) before 1.0730 (end-point of the downtrend) and 1.0700 (psychological level).
- EUR/USD continues to move sideways near 1.0800 on Monday.
- Strong resistance seems to have formed at around 1.0830.
- The pair could struggle to find direction ahead of US inflation data on Tuesday.
EUR/USD closed the fourth consecutive day in positive territory on Friday but was virtually unchanged for the week. The pair holds steady at around 1.0800 to start the new week.
The US Dollar (USD) edged lower ahead of the weekend as the Bureau of Labor Statistics (BLS) announced that it revised the monthly Consumer Price Index (CPI) increase for December lower to 0.2% from 0.3%. On Tuesday, the BLS will release CPI figures for January and investors could refrain from taking large positions ahead of the inflation report.
Over the weekend, European Central Bank ECB Governing Council member Fabio Panetta argued that the time for an interest rate cut was fast approaching. "Any speculation on the exact timing of monetary easing would be a sterile exercise," Panetta added. These comments, however, failed to trigger a noticeable reaction in EUR/USD during the weekly opening.
The US economic docket will not feature high-impact data releases on Monday. Meanwhile, US stock index futures trade flat in the early European session, pointing to a neutral risk mood.
Later in the day, several Federal Reserve (Fed) policymakers are scheduled to speak. At this point, markets are convinced that there won't be a rate reduction in March and comments from officials are unlikely to influence the market positioning in a significant way.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart climbed above 50, pointing to a bullish tilt in the short-term outlook. EUR/USD, however, could have a difficult time clearing 1.0830, where the Fibonacci 23.6% retracement level of the latest downtrend and the 200-day Simple Moving Average (SMA) align. A daily close above that level could attract technical buyers and open the door for an extended recovery toward 1.0880 (Fibonacci 38.2% retracement) and 1.0900 (psychological level, 200-period SMA on the 4-hour chart).
On the downside, interim support is located at 1.0770 (20-period SMA) before 1.0730 (end-point of the downtrend) and 1.0700 (psychological level).
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.