- Outlook EUR / USD is weak in the middle of trade optimism and dollar strength.
- Optimism in USA can stabilize markets.
- The FED opened and the ECB’s Doviljski tone can further weaken the euro.
EUR / USD Outlook It becomes a treasure bear after breaking 1,1200 lunch shortly during the Asian session on Friday. The movement of the lower part came in the midst of re-power and optimism for the dollar store.
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The couple managed to loss and earned to an area 1,1250, but remains under pressure due to trade development and stronger data of American jobs. President Trump announced a great trading job with a greatness, although 10% of tariffs remain in place. The partial agreement launched a modest match in the dollar.
Market feeling has also improved due to US trading talks scheduled 10. May in Switzerland. Although both sides have mitigated expectations, the continuation of the negotiations offers stability in the global market.
In the meantime, President Trump maintains a strong attitude against China and strengthened that by appointing a new envoy Beijing. The president also stated that he would not offer too many exemptions, who signaled caution.
On the front of the data, the initial unemployed claims that the data from the United States fell to 228K from the previous 241k. Permanent requirements also reduced 29K to 1,879 million. The employment rate of the insured remains constant to 1.2%. These figures show elastic job market, allowing food to keep interest rates for longer.
On the other hand, the euro remains vulnerable because the ECB is now more goodbye. The Central Bank is expected to reduce another 25 bps until June. ECB officials are still concerned about the economic layout of the eurozone, although they are confident in achieving inflation goal by the end of the year.
Key events for EUR / USD
- Fomc member Waller speaks
- Trade headlines
EUR / USD Technical Outlook: Sales Pressure
The four-sea card for EUR / USD depicts a slight recovery from daytime lons around 1,1200. The RSI picked up from the zone-covered zone, but still lies below 50-0, which shows sales pressure.
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The price is located significantly below the 30-period SMA, which is another indicator for sale. However, as long as the 1,1200 handle is protected, the price can be recovered to the annual height. The breaking level could lead to 1,100.
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