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EUR/USD Forecast: Neutral In The Short-Term And Holding above 1.0800

Valeria Bednarik - Chief Analyst at FXStreet

EUR/USD Current Price: 1.0829

  • Investors are cautiously optimistic amid economic re-openings in the northern hemisphere.
  • Major pairs are trading within familiar levels amid critical events scheduled for later this week.
  • EUR/USD neutral in the short-term and holding above 1.0800.

The EUR/USD pair is ending Monday little changed in the 1.0820 price zone, with most major pairs confined to familiar levels ahead of critical events taking place later this week. The pair peaked at 1.0859, as investors were cautiously optimistic, focusing on economic re-openings. Leaders in the northern hemisphere have already started losing lockdowns or announced that it would begin next week. Same happens in some states of the US, which are slowly moving to “normal.” Nevertheless, there’s a long way ahead.

In the data front, the US released the April Dallas Fed Manufacturing Business index, which resulted at -73 from -70 in March. The focus remains in central banks’ announcements and preliminary estimates of Q1 GDP for both economies to be out later this week.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is neutral in the short-term and seems unlikely it would find directional strength during the upcoming sessions ahead of the mentioned events. The pair continues to develop below a descendant trend line coming fro 1.1147, currently at around 1.0865. In the 4-hour chart, the pair is between its 20 and 100 SMA, with the shortest one maintaining its bearish slope. Technical indicators stand within positive levels, although without enough directional strength.

Support levels: 1.0790 1.0750 1.0710  

Resistance levels: 1.0865 1.0900 1.0940

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