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EUR/USD: ahead of report on US consumer sentiment
Information is not investment advice
EUR surged after the encouraging data on the EU industrial production. The US consumer sentiment data this evening can add some fresh volatility.
Let’s get the chronology of recent events concerning EUR/USD.
May 26 – June 4: EUR/USD kept rallying at a high speed.
June 5: the better-than-expected NFP raised demand for USD, and the pair fell down.
June 6 – June 10: EUR was climbing again.
June 11: the market sentiment switched to risk-off on the previous day’s Fed pessimistic outlook for the US recovery and fears of the second wave of the coronavirus pandemic. As a result, EUR/USD dropped again.
June 12, 12:00 MT time: the Eurozone industrial production turned out better than analysts anticipated. EUR/USD went upward. Nevertheless, we must admit that euro bulls are not so strong anymore.
June 12, 17:00 MT time: the US consumer sentiment report will be published. It will definitely give an additional stimulus to the next EUR/USD price movement. If the US consumer sentiment is worse than the forecast, it may push the pair down because it will underpin the risk-off sentiment and increase demand for the safe-haven US dollar. However, the market these days is really unpredictable. Catch the market movement and join it!
EUR/USD is trading in a range between 1.138 and 1.129. Most analysts have a bearish prospect for euro. There is a strong resistance at the 200MA at 1.1325 on the daily chart, that the pair has failed to break on March 8. If the price breaks down the support level at 1.129, it may fall even deeper to 1.117 at the 61.8% Fibonacci level. Otherwise, if euro buyers are stronger and the pair crosses the resistance at 1.138, it may rally further to 1.15.
EUR/USD, Daily chart
EUR/USD, weekly chart
US stocks are set to open lower Friday, with investors worry over rising tensions between the US and China, deadlock over the next virus relief bill and possible disappointments from the key monthly employment report.
The pair was falling down amid the waning US dollar. However, the situation changed this month.
Dollar continues to keep firmer on the day, all eyes on the US jobs report later.