EUR/USD Forecast: Bullish potential intact ahead of FOMC’s Minutes

EUR/USD Forecast: Bullish potential intact ahead of FOMC’s Minutes

EUR/USD Current Price: 1.0960

  • EU inflation contracted by more than anticipated in April, printing 0.3% YoY.
  • US Fed’s policymakers will unveil the minutes of their latest meeting.
  • EUR/USD retains its positive stance and heads toward the 1.1000 level.

EUR/USD Forecast: Bullish potential intact ahead of FOMC’s Minutes

FOREX SIGNALS

The EUR/USD pair holds at the upper end of its weekly range, hovering around 1.0960 ahead of the US opening and after bottoming for the day at 1.0918. Market’s have stabilised, and the greenback remains the weakest, falling against all of its major rivals, including those considered safe havens. Equities trade in the green in Europe, posting modest intraday gains. US Treasury yields, however, have eased as hopes for a soon-to-come coronavirus vaccine eased.

The EU published April inflation data, which came in worse than anticipated. The annual CPI resulted in 0.3%, below the previous 0.4%. Core annual inflation was of 0.7%, also below the previous. The Union also published its March Current Account, which posted a seasonally adjusted surplus of €27.4 B.

The US published MBA Mortgage Applications for the week ended May 15, which fell by 2.6% after advancing 0.3% in the previous week. Later today, the FOMC will release the Minutes of its latest meeting. No surprises are expected from the document, although investors will be looking for hints on future monetary policy decisions.

EUR/USD short-term technical outlook

The EUR/USD pair is mildly bullish, although holding within familiar levels. Technical readings in the 4-hour chart suggest that the pair could extend its advance, as it keeps developing above all of its moving averages, with the 20 SMA heading firmly north above the larger ones. Indicators, in the meantime, are trying to resume their advances after consolidating near overbought readings, also favouring a new leg higher.

  Forex technical analysis and forecast: Majors, equities and commodities

Support levels: 1.0920 1.0890 1.0865  

Resistance levels:  1.0975 1.1010 1.1050

View Live Chart for the EUR/USD

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