EUR/USD Current Price: 1.0822
- Profit-taking ahead of the weekend helped the shared currency to recover some ground.
- The US and the EU economies are expected to have contracted in the three months to March.
- EUR/USD turned neutral in the short-term, but the risk remains skewed to the downside.
The EUR/USD pair recovered some ground on Friday, closing the week anyway in the red in the 1.0820 price zone. The pair bottomed at 1.0726 amid persistent dollar’s strength, recovering from such a low on the back of profit-taking ahead of the weekend. Data released at the end of the week continued to reflect the effects of the pandemic on the economies. The German IFO survey showed that the Business Climate in April fell to 74.2 from 85.9 in March, below expected. In the US, March Durable Goods Orders fell by 14.4%, also worse than anticipated. The Michigan Consumer Sentiment Index was upwardly revised to 71.8 in April, slightly better than the preliminary estimate.
Monday will be a quiet day in terms of macroeconomic releases, but the upcoming week will be a busy one, as the Fed and the ECB, both will have monetary policy meetings. Also, the US and the EU will release the first estimate of their Q1 GDP, expected to indicate economic contraction.
EUR/USD short-term technical outlook
The EUR/USD pair has settled a few pips below 1.0830, the 61.8% retracement of its latest daily advance. In the daily chart, the 20 DMA maintains its bearish slope, converging with the next Fibonacci resistance at 1.0890. The larger moving averages keep heading south above the shorter one, while technical indicators recovered just modestly, falling short of supporting further gains. In the 4-hour chart, the pair is a couple of pips above its 20 SMA, but below the larger ones, while the Momentum indicator remains directionless below its 100 line. The RSI aims higher around 51, which also falls short of indicating additional advances. The pair would need to recover beyond 1.0900 to reduce chances of a steeper decline, an unlikely scenario at the time being.
Support levels: 1.0790 1.0750 1.0710
Resistance levels: 1.0830 1.0860 1.0900
View Live Chart for the EUR/USD
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.