EUR/USD Forecast: holding in range, but bulls don't give up
Majors have been quite active during the past two sessions, although the EUR/USD pair was unable to attract interest. An early decline was contained by buyers around 1.1180, advancing early Europe as the greenback retains its weak tone, advancing only when a rival gets sold. Local share markets are under pressure, as OPEC's disappointing announcement hit risk-appetite, boosting demand for safe-havens' gold and yen.
In the data front, attention is focused in US figures, as the country will release its second revision of its Q1 GDP, Durable Goods Orders for April and the Michigan Consumer sentiment index for May. GDP has been estimated at 0.7% and is expected to be revised to 0.9%, while goods orders are expected to disappoint again, with a 1.4% decline. Readings in line with market's forecast will do little for the greenback, but keep it under pressure.
From a technical point of view and in the short term, the pair presents a modest upward potential, as despite indicators head higher above their mid-lines, the price is barely holding above a horizontal 20 SMA, trapped between its early week range. The pair topped at 1.1267, also this year's high, the level to surpass to confirm additional gains towards 1.1300 first, and 1.1345 later.
Below 1.1160 the pair can retreat further, with the next intraday supports at 1.1120 and 1.1080.
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.
