EUR/USD is lacking enough buying pressure to reach the crucial psychological level of $1.1900. Granted, it has risen by over 1% since the beginning of the week. An improvement of the risk sentiment, and Fed’s cautious stance, pushed the dollar index lower by about 1.12% to July’s lowest level in the same timeframe.
In today’s session, the currency pair will be reacting to preliminary data on Eurozone’s GDP, CPI, and unemployment rate. Better-than-expected figures are likely to push EUR/USD to and past the crucial level of $1.1900. Later in the session, the market will be reacting to the scheduled release of the US PCE inflation data.
EURUSD technical outlook
EUR/USD is finding support at 1.1875 after lacking enough momentum to push the price to the crucial resistance level of 1.1900. Earlier on Friday’s session, the currency pair hit an intraday high of 1.1895 before pulling back. At the time of writing, it was down by 0.03% at 1.1884. Notably, 1.1900 has been an evasive level since the beginning of July. On a two-hour chart, it is trading above the 25 and 50-day EMAs.
In the near term, I expect EUR/USD to trade within a tight range of between 1.1875 and 1.1900 as investors await Eurozone’s GDP and US PCE inflation data. If the bulls manage to push the prices past the resistance level at 1.1900, the next target will likely be at the prior support-turn-resistance level of 1.1920 or higher at 1.1950.
On the flip side, if data from the Eurozone miss the estimates, the support level is likely to move below the horizontal channel’s lower border to 1.1864, which is along the 25-day EMA. Further selling pressure would probably yield enough downward momentum to move past 1.1850 to 1.1841 along the 50-day EMA.