We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/wSHeU7aRoX
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -7.7% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2,1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.93%, while traders in US 500 are at opposite extremes with 76.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TRp6GF9snQ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.32% 🇬🇧GBP: 0.27% 🇪🇺EUR: 0.24% 🇨🇭CHF: 0.16% 🇯🇵JPY: 0.09% 🇳🇿NZD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/O81hxQPBpL
  • Heads Up:🇯🇵 Tertiary Industry Index MoM (MAY) due at 04:30 GMT (15min) Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.31% France 40: 1.23% FTSE 100: 0.94% Wall Street: 0.64% US 500: 0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YSclbAH1mY
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/sBmNFhegO2
  • RT @DanielGMoss: Broad risk-on tilt seen during #APAC trade with the trade-sensitive $AUDUSD following #SP500 futures higher Haven-associa…
EUR/USD Forecast: Euro Soars Past 200-DMA on EU Recovery Fund

EUR/USD Forecast: Euro Soars Past 200-DMA on EU Recovery Fund

2020-05-28 21:30:00
Rich Dvorak, Analyst
Share:

EURO TO US DOLLAR FORECAST: EUR/USD PRICE ECLIPSES 200-DAY MOVING AVERAGE DRIVEN BY EU RECOVERY FUND HOPE

  • EUR/USD outlook has enjoyed a positive boost owing to a 750 billion Euro recovery fund proposal aimed at offsetting
  • The Euro is on pace for a 2% gain this week as spot EUR/USD surges past the 1.1000 price level and its 200-day moving average
  • EUR price action could struggle against its safe-haven US Dollar peer as EU countries debate the coronavirus stimulus package amid escalating China tension

EUR/USD prices have been on a tear higher recently. Spot EUR/USD just extended its rally for the fourth-consecutive trading session and sent the major currency pair to its strongest reading in eight weeks. The proposed EU recovery fund, which would extend 500 billion in grants and 250 billion in loans, stands out as a primary driver of Euro gains.

EUR/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 3% 3%
Weekly -2% 4% 2%
What does it mean for price action?
Get My Guide

A marked rise in the German Bund to Italian BTP spread underscores this prospect of symbolic EU action and likely contributes to advancing EUR/USD price action. Moreover, Euro strength also seems exacerbated in part by broad US Dollar weakness as demand for safe-haven currencies fades and unwavering risk appetite crushes volatility.

EUR/USD PRICE CHART: DAILY TIME FRAME (DEC 2019 TO MAY 2020)

EURUSD EUR to USD Price Chart Euro Forecast

EUR/USD now trades comfortably above its 200-day moving average again after a 300-pip rally in spot prices since the potential EU stimulus package was first announced on May 18. Also, after eclipsing technical resistance posed by the 1.1000 price level, Euro bulls might attempt to make another push higher and possibly look toward the March 27 swing high as an upside objective.

EUR Forecast
EUR Forecast
Recommended by Rich Dvorak
Get Your Free EUR Forecast
Get My Guide

On the other hand, EUR/USD prices are probing the upper Bollinger Band, which, statistically speaking, could facilitate a mean-reversion lower. Likewise, rising China tension threatens to rekindle US Dollar demand and spark a reversal in spot EUR/USD. A breakdown in negotiations over the 750 billion recovery fund proposal – a material possibility in light of opposition voiced by relatively more frugal European counties – could similarly cause EUR/USD price action to pivot sharply lower.

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.