EUR/USD Forecast: Bulls aim to conquer the 1.1000 threshold

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0993

The US Dollar eases following poor American data and despite a souring mood.
Federal Reserve Chairman Jerome Powell will testify again before Congress.
EUR/USD is technically bullish and could run towards 1.1100 before the weekend.

The EUR/USD pair traded as high as 1.1011 during London trading hours, retreating afterwards but holding on to modest intraday gains at around 1.0990. The Euro is among US Dollar’s strongest rivals, up despite the souring market mood.

The USD fell on Wednesday, following the first day of Federal Reserve (Fed) Chairman Jerome Powell’s testimony before Congress. Powell repeated that rate decisions would be made meeting by meeting and left the door open for additional hikes, although clarifying the pace will be moderated. Stock markets advanced as an immediate reaction to the detriment of the safe-haven Greenback. Equities resumed their slides early on Thursday, but the USD is unable to gain momentum, trading mixed across the FX board.

Data-wise, the Eurozone did not release relevant figures, while the United States (US) published Initial Jobless Claims for the week ended June 16, which rose to 264K. Also, the Q1 Current Account posted a deficit of 219.3 billion, while the May Chicago Fed National Activity Index unexpectedly fell to -0.15. Discouraging US figures add to the poor market sentiment ahead of Wall Street’s opening.

Later in the day, the US will release May Existing Home Sales while the EU will unveil the preliminary estimate of June Consumer Confidence. Additionally, Fed Chair Powell will repeat his testimony before a different congressional commission.

EUR/USD short-term technical outlook

The EUR/USD pair retains its bullish stance, according to the daily chart. The Momentum indicator has extended its advance, maintaining its bullish slope at its highest in over two months, while the Relative Strength Index (RSI) indicator consolidates near overbought readings without signs of upward exhaustion. At the same time, the pair develops above all its moving averages, with the 20-day Simple Moving Average (SMA) crossing above the 100-day SMA, both at around 1.0800.

The pair is overbought in the near term, but there are no signs it could change course. In the 4-hour chart, technical indicators consolidate at extreme levels while moving averages advance well below the current level, with a bullish 20-period SMA providing dynamic support at around 1.0945.

Support levels: 1.0945 1.0890 1.0850

Resistance levels: 1.1020 1.1060 1.1100

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.