EUR/USD Daily Price Forecast – The Euro Pair Rebounded From Lows On Optimistic US-Sino Trade Talks

Following yesterday’s slip in the US-German yield spread, the euro had dropped beyond the strong resistance level of 1.1192 during the North American session. But the plunge seemed to fade out on Wednesday morning. The pair started trading at 1.1204 level, going straight up on creating fresh highs for the day. EUR/USD later remained in consolidation mode near the upper vicinity of 1.1227 level. The pair had attempted to breach this strong resistance level and finally succeeded to do so. The pair is now slowly heading to the next resistance of 1.1245/50 levels.

The Financial Times recently published updated reports showcasing the current optimistic status of the US-China trade talks. The report mentioned that the parties had resolved most of the issues. Crude Oil prices got an exemplary boost after the news making it reach $70 per barrel level. The EUR/USD is expected to uplift on the same grounds of easiness in the global economy.

At the time of writing this article (07:04 GMT), the pair was trading at 1.1223 level.

Key EUR/USD Influencing Events Lined Up Today:

08:00 GMT

The Markit Economics will publish the March PMI monthly Composite Reports on Manufacturing and Services for Eurozone. PMI report calculates data on the contribution of the company into total manufacturing and services output. The consensus expectations are in-line with the previous 51.3 points.

09:00 GMT

The Eurostat will broadcast February Retail Sales (YoY) for the Euro Zone. The Sales data will record the rate of changes in sales which are deflecting. The market analysts take a bullish stance of 2.3 percent over the previous 2.2 percent.

14:00 GMT

The Institute for Supply Management (ISM) will release the March Non-Manufacturing PMI for the US. The Index will tend to reflect the status of business in Non-manufacturing sector as the sector hardly impacts the US GDP, unlike the manufacturing sector. The consensus estimates the numbers, 1.07 points down, before the previous 59.7 points.

Technical Analysis

EURUSD 5 Min 3 April 2019
EURUSD 5 Min 3 April 2019

The EUR/USD retraced from the 78.6 Fibonacci retracement level knocking off the upper side of 1.1220/1.2230 levels. The pair had a failed attempt in breaking the sound resistance level of 1.1270. The euro pair was trading above the Simple Moving Average (SMA) computed for the significant days. This position of the pair develops a bullish outlook for its future movements. The Moving Averages Convergence Divergence (MACD) revealed no signs of bullish buy signals until 07:00 GMT.

This article was originally posted on FX Empire

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