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EUR/USD Forecast: Keeps Trading Within Limited Intraday Ranges Near A Critical Resistance

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EUR/USD Forecast: Keeps Trading Within Limited Intraday Ranges Near A Critical Resistance

EUR/USD Current Price: 1.2148

  • German Q4 Gross Domestic Product was upwardly revised to 0.3%.
  • Wall Street recovered ground while US Treasury yields reach fresh one-year highs.
  • EUR/USD keeps trading within limited intraday ranges near a critical resistance.

The EUR/USD pair topped once again in the 1.2170 region, retreating afterwards to a weekly low of 1.2108. The dollar gathered momentum ahead of the US opening, once again following the lead of US Treasury yields, which rose to new one-year highs. The yield on the benchmark 10-year Treasury note hit 1.435% and heads into the American close at around 1.37%, with the greenback retreating alongside. Meanwhile, stocks advanced, with the DJIA reaching fresh all-time highs.

On the data front, Germany published the final version of its Q4 Gross Domestic Product, which was upwardly revised to 0.3% from 0.1%. The US released January New Home Sales, which were up by 4.3%, beating expectations. This Thursday, the EU will publish February Consumer Confidence and the Economic Sentiment Indicator for the same month. The US, on the other hand, will release January Durable Goods Orders, and the second estimate of Q4 GDP, expected to be upwardly revised from 4.0% to 4.1%.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair bounced from the mentioned low and trades in the 1.2140 region, little changed for a second consecutive day. The near-term picture is neutral, as the pair is trading between moving averages and within the familiar levels, as technical indicators hover around their midline, without clear directional strength. The downside is limited by the 38.2% retracement of the November/January rally at around 1.2060, while on the upside, sellers remain aligned in the 1.2170/80 price zone.

Support levels:  1.2100 1.2060 1.2015  

Resistance levels: 1.2175 1.2210 1.2250

View Live Chart for the EUR/USD

 

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Posted-In: FXStreetNews Eurozone Forex Global Markets

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