EUR/USD Forecast: Consolidating gains and with room to advance further
EUR/USD Current Price: 1.1965
- EU February Industrial Production contracted 1.6% YoY, missing expectations.
- US Federal Reserve chief Powell is due to participate in an online event.
- EUR/USD is pressuring monthly highs and ready to test the 1.2000 threshold.
The EUR/USD pair reached 1.1973, its highest since mid-March, holding nearby heading into the US opening. The dollar remains weak amid easing US Treasury yields and the poor performance of equities. Worth noting that global stocks have been lacking directional strength this week, waiting for a fresh catalyst.
The shared currency rallied despite European data failed to impress. February Industrial Production contracted 1% MoM and fell by 1.6% YoY. The US has just published the March Import Price Index, which rose 1.2% MoM and the Export Price Index for the same month that was up by 2.1%, both beating the market’s expectations. Later today, US Federal Reserve chief Jerome Powell is due to speak at the Economic Club of Washington via satellite.
EUR/USD short-term technical outlook
The EUR/USD pair maintains its bullish stance in the near-term, with room to extend its advance. In the 4-hour chart, the pair is above a bullish 20 SMA, which advances above the longer ones. Technical indicators are neutral at daily highs and near overbought readings, without signs of giving up.
Support levels: 1.1920 1.1870 1.1825
Resistance levels: 1.1975 1.2010 1.2045
View Live Chart for the EUR/USD