In our previous weekly technical outlook for the Euro/Dollar (EUR/USD) or simply the Eur Usd dollar, we discussed the possibility of an invalidated supply level at 1.0851 turning into a demand level, or resistance turning into support. On Monday, 10th April 2023, the trading day candle rejected this level, paving the way for Tuesday's trading to push the price higher.
As we dive deeper into the EURUSD landscape, we'll review the daily chart, analyze the technical outlook, and explore the impact of upcoming economic news on this popular forex pair.
Daily EUR/USD Chart Analysis
In light of recent price action, it's necessary to revisit the daily EUR/USD chart. While the previously identified demand zones (1.06824, 1.06232, and 1.05640) remain valid, we need to adjust these zones closer to the recent price action.
The daily chart currently shows the price reacting off the resistance zone around the 1.10422 level, with a support zone just a few pips below the current price at 1.09098. If the price invalidates the 1.09098 level, which is likely, we can expect the price to test the next support at 1.07088.
4-Hour EUR/USD Chart: A Bearish Divergence
The 4-hour EUR/USD chart tells a similar story, with the technical analysis confirming our daily chart findings. There's a clear bearish divergence when comparing the highs of 23rd March and 14th April 2023 (1.09299 and 1.10758, respectively) with the MACD highs.
1-Hour EUR/USD Chart: A Major Pull-Back on the Horizon
A closer look at the 1-hour EUR/USD chart suggests a major pull-back is likely, with the MACD already below its zero line, indicating bears are in control. As we mentioned earlier, it's crucial to keep an eye on the support level at 1.09098.
Upcoming Economic News and Its Impact on EUR/USD
The Euro is expected to be affected early next week by the ZEW economic sentiment. Moreover, the Euro Area inflation print is anticipated to be higher for the coming month, possibly fueling ECB hawks.
These factors, combined with ongoing hawkish rhetoric from the ECB, are likely to impact the EUR/USD pair in the short term. Retail sentiment is currently positive for EUR/USD, and the currency pair has recently hit a fresh yearly high of 1.1075. However, a consolidation period may be necessary before any further upward movement can occur.
Stay updated on the latest news and analysis on the EURUSD pair by checking out real-time rates and interactive charts, as well as expert insights and forecasts.
EUR/USD News Expected in the Coming Week
The upcoming economic news scheduled for the week can influence the EUR/USD price. Here's a brief overview of what to expect:
- Mon, Apr 17: USD Empire State Manufacturing Index & EUR ECB President Lagarde Speaks
- Tue, Apr 18: EUR German ZEW Economic Sentiment
- Wed, Apr 19: No major events scheduled
- Thu, Apr 20: USD Unemployment Claims, USD Philly Fed Manufacturing Index, USD FOMC Member Waller Speaks, and USD Existing Home Sales
- Fri, Apr 21: EUR French Flash Manufacturing PMI, EUR French Flash Services PMI, EUR German Flash Manufacturing PMI, EUR German Flash Services PMI, EUR Flash Manufacturing PMI, EUR Flash Services PMI, USD Flash Manufacturing PMI, and USD Flash Services PMI
As these economic events unfold, traders should be prepared for potential price fluctuations in the EUR/USD market. By keeping a close eye on technical analysis and staying informed about upcoming news, you can make more informed trading decisions. See the latest GBP/USD forecast.
EUR/USD Forecast: Key Takeaways
In summary, the EUR/USD pair is currently facing resistance around the 1.10422 level, with a crucial support level at 1.09098. The technical outlook for both the daily and 4-hour charts suggests a bearish divergence, while the 1-hour chart indicates a potential pull-back in the near future.
Upcoming economic news, including ZEW economic sentiment and Euro Area inflation data, may impact the short-term price movement of the EUR/USD pair. Stay updated on the latest developments and make informed trading decisions by monitoring real-time rates, interactive charts, and expert insights.
Remember to keep an eye on support and resistance levels, as they play a crucial role in determining the future direction of the EUR/USD pair. By understanding the interplay between supply and demand, you can better anticipate price movements and seize potential trading opportunities.