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EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week

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EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week

EUR/USD Current Price: 1.1234

  • US upbeat employment data gave high-yielding assets a temporal boost.
  • Record coronavirus cases in the US put at doubt a possible economic recovery.
  • EUR/USD neutral, trading within familiar levels for a third consecutive week.

The EUR/USD pair hit a daily high of 1.1302, but gave up and settled near daily lows, in the 1.1230 price zone. Risk-appetite lead the way for most of the day, boosted early in the US session by an upbeat Nonfarm Payroll Report. According to official figures, the US added 4.8 million new jobs in June, while the unemployment rate contracted to 11.1%. The headline reading for May was upwardly revised to 2.7 million, adding to the good news. However, the US also reported a record 51,000 new coronavirus cases. New York delayed the re-opening of some indoor activity after California lockdown some areas on Wednesday. Also, Houston reported that ICU capacity is at 102%. Despite hopes a vaccine is nearby and that the economy is doing pretty well, the reality is that things are only getting worse in the world’s largest economy.

The US celebrates a holiday this Friday, which means the day will be over with London’s close. During the European morning, Markit will publish the final versions of the Union’s services PMI, seen little changed from preliminary estimates.

EUR/USD short-term technical outlook

The EUR/USD pair is technically neutral, confined to a 1.1170/1.1330 range for a third consecutive week. In the 4-hour chart, the pair is between Fibonacci levels and moving averages, with the 100 SMA converging with the 23.6% retracement of its latest daily advance at 1.1270. Technical indicators eased within positive levels, now flat around their midlines. There’s no scope for a significant breakout during the upcoming sessions, but the risk is skewed to the downside, with better chances of a bearish extension being the next relevant move.

Support levels: 1.1210 1.1170 1.1125  

Resistance levels: 1.1270 1.1310 1.1350  

View Live Chart for the EUR/USD

 

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Posted-In: FXStreetNews Eurozone Forex Markets