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EUR/USD Daily Price Forecast – The 200-days Significant SMA Traded Above the Pair Developing Long-term Bearish Trend

Nikhil Khandelwal

The Euro pair started the day near 1.1252 levels with some small corrections of around 6-7 pips. The early Asian session correction gets discounted to the negative growing yield spread between the US and German Bond yields.

The last day’s news regarding Iranian Sanction Waiver rejection has strongly impacted the oil prices. The Crude Oil West Texas Intermediate (WTI) Futures was trading at its top levels on Tuesday morning session. This increased pressure on the crude oil may send some negative vibes onto the EUR/USD too.

A few days back, the pair were beaten down hard on the backdrop of strengthening greenback and weakening EUR/USD. The Euro pair had reported sparse German manufacturing activity index which came out shocking the market. The selling bias seems to sustain even on this day.

There are some key euro events lined up for the day. However, if things turn out bearish again repeatedly, then ECB dovish stance for economic growth gets corroborated.

Key EUR/USD Impactful Events

13:00 GMT

The Federal Housing Finance Agency will broadcast the February MoM Housing Price Index for the US. The analyst expects bearish figures with 0.3 percentage lesser than the previous index.

14:00 GMT (EU-based event)

The European Commission will publish the April Consumer Confidence index. Increasing consumer confidence may have bullish effects on the EUR while reducing figures would imply as bearish on currency. The street analysts are taking a bullish stance on this index. They expect a 0.1 percent increase in the previous numbers.

14:00 GMT (US-based event)

The US Census Bureau will release the MoM New Home Sales for March. The index will measure the activities of the housing market. This time, the consensus estimates drop in numbers with 170 K to the prior.

Technical Analysis

EURUSD 60 Min 23 April 2019

The Euro pair is trying hard to push itself above 1.1250 levels after the last fall from 1.1300 levels. On a longer scale, the significant 100-days SMA and 200-days SMA stood above the pair signaling a bear ride. Also, the EUR/USD may continue drifting near the lower vicinities of 1.1220/00 levels in the near-term. Investors need to take precaution as the RSI stays near the 50 levels and it may get skewed anytime. Meanwhile, the pair has an active resistance line near 1.1320 levels and support line near 1.1180 levels.

This article was originally posted on FX Empire

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