Yahoo Finance EUR/USD Daily Forecast: Euro Continues Highers While Dollar Index Falls to 9-Week Low
EUR/USD is attempting to post a fifth straight day of gains and was last seen approaching highs not seen since the end of March as the dollar remains under pressure.
The currency pair is lifted by prospects of further easing in Europe while the dollar is falling on the back of strength in the stock markets.
It’s expected to be a busy day ahead with several risk events that stand to move the markets.
Trump announced late yesterday that he will be giving a press conference related to China on Friday. Equity markets and some of the risky currencies, such as the Australian and New Zealand dollars, pared some gains after the announcement yesterday.
Fed Chair Powell is scheduled to speak in early North American trading. It will be his last chance to communicate the Fed’s stance ahead of the typical blackout period ahead of the Fed meeting to take place on June 11.
Further, the latest US PCE price index data will be released in the US session which also stands to move the markets. Analysts expect the core component of the index to show a decline of 0.3% last month following a drop of 0.1% in the prior reading.
Lastly, the markets are susceptible to month-end adjustment which also stands to impact volatility today.
Earlier today, Europe reported consumer prices to have risen 0.1% since last year which was in line with expectations but down from a rise of 0.4% in the last reading.
Technical Analysis
While EUR/USD shows strong upward momentum and a clear near-term bullish trend, the risk events in the session ahead stand to cause volatile fluctuations.
The pair cleared above it’s 200-day moving average yesterday which sets a bullish tone and suggests dips should continue to be bought.
Resistance for the session ahead is seen at 1.1183 which is just above the late March high.
EUR/USD closed yesterday at 1.1075 resistance but is seen trading firmly above it in the early day. The level is seen as the support for the session ahead.
The single currency is the strongest among the majors in the early day and for the week thus far.
Bottom Line
Several risk events in the session ahead suggest it will be a volatile session for EUR/USD and the markets in general.
The pair is approaching resistance at 1.1183 which may prove to be a major hurdle for bulls.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
