EUR/USD Forecast: Holding onto gains, poised to test 1.1915
EUR/USD Current Price: 1.1838
- German July inflation remained unchanged from the previous estimates, at -0.1% YoY.
- US employment data unexpectedly improved, with unemployment claims below 1 million.
- EUR/USD holds on to higher ground, bearish only below 1.1790.
The EUR/USD pair recovered the 1.1800 level as demand for the greenback receded, reaching a higher high for the week at 1.1853. The pair held near the mentioned high ahead of US data and after Germany reported July inflation, which remained unchanged at -0.1% YoY. Enthusiasm fades, with global equities under pressure and government debt yields stable near their recent highs.
US data surprised to the upside, as Initial Jobless Claims for the week ended August 7 fell to 963K, the first time below 1M since mid-March. Continuing Jobless Claims for the week ended July 31, shrank to 15.486M, also beating the market’s expectations.
EUR/USD short-term technical outlook
The greenback got a mild boost with better-than-expected US employment-related data, with US futures also advancing with the headline. The EUR/USD pair, however, is trading in the 1.1830 price zone, still bullish in the short-term. The 4-hour chart shows that the pair continues to develop well above its moving averages, while technical indicators eased modestly but hold well above their midlines. The pair could turn bearish on a break below the 1.1790 support, while a retest of the year high will be likely on an extension above 1.1870.
Support levels: 1.1790 1.1740 1.1690
Resistance levels: 1.1870 1.1915 1.1950
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