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EUR/USD Price Forecast: A Return to $1.55 Would Bring $1.070 into Play

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It is another relatively quiet day ahead on the Eurozone economic calendar, leaving the EUR in the hands of market risk sentiment.

Key stats due out later today include finalized inflation figures for the Eurozone. Barring any marked revisions, however, the numbers should have a muted impact on the EUR.

Risk-off sentiment from Thursday spilled over to the Asian session this morning to send the EUR into negative territory.

The exponential moving averages reflected the shift in sentiment, with the EUR falling back through the 50-day EMA to bring the Major Support Levels into play.

EUR/USD Price Action

At the time of writing, the EUR was down 0.45% to $1.04982.

A mixed start to the day saw the EUR strike an early high of $1.05608 before falling to a low of $1.04940.

The EUR left the Major Support and Resistance Levels untested early on.

EURUSD 170622 Daily Chart
EURUSD 170622 Daily Chart

Technical Indicators

The EUR will need to move through the $1.0509 pivot to target Thursday’s high of $1.06014 and the First Major Resistance Level at $1.0638.

Demand for riskier assets will need to improve to support a return to $1.06 levels.

An extended rally would test resistance at $1.070 and the Second Major Resistance Level at $1.0730. The Third Major Resistance Level sits at $1.0951.

Failure to move through the pivot would bring the First Major Support Level at $1.0417 into play.

Barring an extended sell-off throughout the day, the EUR should avoid sub-$1.03. The Second Major Support Level sits at $1.0289.

EURUSD 170622 Hourly Chart
EURUSD 170622 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. The EUR sat below the 50-day EMA, currently at $1.05336. The 50-day EMA fell back from the 100-day EMA. The 100-day EMA eased back from the 200-day EMA: price negative.

A return to $1.055 would give the bulls a run at the 100-day EMA, currently at $1.05794 and a look at $1.070.

EURUSD 170622 4-Hourly Chart
EURUSD 170622 4-Hourly Chart

Next Up

After the Eurozone inflation figures, US industrial production numbers will draw interest late in the session.

Monetary policy will remain the area of focus, however. Fed Chair Powell is due to speak later this afternoon. Whether the Fed Chair can calm market tensions remains to be seen.

This article was originally posted on FX Empire

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