EUR/USD Forecast: Fresh highs but the Euro is running out of time
Premium|Take advantage of 75% OFF on your first month.
Grab this special offer, it's a 1 year 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! 75% OFF!
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- US Dollar gains momentum during the American session amid risk aversion.
- Key data ahead: US GDP on Thursday and Euro area inflation on Friday.
- EUR/USD hits fresh 13-month highs but retreats again.
Despite reaching fresh YTD highs and rising on Wednesday, the bullish outlook for the EUR/USD in the short term has remained unchanged. The pair was rejected from the recent top and pulled back as the US Dollar strengthened. The time for a rally above 1.1050 is running out.
The German Gfk Consumer Confidence survey improved in May from -29.3 to -25.7. On Thursday, Eurozone (EZ) consumer confidence data is due. The crucial day will be Friday, with German inflation and EZ GDP growth. Next week is the European Central Bank (ECB) meeting. A rate hike looks like a done deal, but the question remains: 25 or 50. The latest round of data favors a 50 basis points hike but renewed banking concerns and slowing inflation offers arguments to doves.
The Euro outperformed on Wednesday, while the US Dollar posted mixed results. On the same day, EUR/USD hit fresh 13-month highs, and AUD/USD and NZD/USD dropped to the lowest in a month. However, the Dollar ended the day stronger as Wall Street slipped again. On Thursday, the US will report Q1 GDP and Consumer inflation, critical numbers ahead of next week’s FOMC meeting.
EUR/USD short-term technical outlook
The EUR/USD rose on Wednesday and peaked at 1.1094, the highest level since March 2022, then pulled back below 1.1050. The trend is up and solid; however, the Euro failed again to make a sustainable run toward 1.1100. The more it takes, the more likely it is to stage a deep correction. But with critical events ahead, investors may stay on the sidelines.
The daily charts show EUR/USD supported by a bullish 20-day Simple Moving Average (SMA) at 1.0950. The 4-hour chart presents the pair above an uptrend line. Fresh highs are on the table as long as it remains above 1.0970; a break below would initially target 1.0950 and then 1.0910.
- US Dollar gains momentum during the American session amid risk aversion.
- Key data ahead: US GDP on Thursday and Euro area inflation on Friday.
- EUR/USD hits fresh 13-month highs but retreats again.
Despite reaching fresh YTD highs and rising on Wednesday, the bullish outlook for the EUR/USD in the short term has remained unchanged. The pair was rejected from the recent top and pulled back as the US Dollar strengthened. The time for a rally above 1.1050 is running out.
The German Gfk Consumer Confidence survey improved in May from -29.3 to -25.7. On Thursday, Eurozone (EZ) consumer confidence data is due. The crucial day will be Friday, with German inflation and EZ GDP growth. Next week is the European Central Bank (ECB) meeting. A rate hike looks like a done deal, but the question remains: 25 or 50. The latest round of data favors a 50 basis points hike but renewed banking concerns and slowing inflation offers arguments to doves.
The Euro outperformed on Wednesday, while the US Dollar posted mixed results. On the same day, EUR/USD hit fresh 13-month highs, and AUD/USD and NZD/USD dropped to the lowest in a month. However, the Dollar ended the day stronger as Wall Street slipped again. On Thursday, the US will report Q1 GDP and Consumer inflation, critical numbers ahead of next week’s FOMC meeting.
EUR/USD short-term technical outlook
The EUR/USD rose on Wednesday and peaked at 1.1094, the highest level since March 2022, then pulled back below 1.1050. The trend is up and solid; however, the Euro failed again to make a sustainable run toward 1.1100. The more it takes, the more likely it is to stage a deep correction. But with critical events ahead, investors may stay on the sidelines.
The daily charts show EUR/USD supported by a bullish 20-day Simple Moving Average (SMA) at 1.0950. The 4-hour chart presents the pair above an uptrend line. Fresh highs are on the table as long as it remains above 1.0970; a break below would initially target 1.0950 and then 1.0910.
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.