Comment: For anyone that’s forex trading, attempting to forecast exactly where price is likely to go in future with certainty would be the holy grail. The fact is every one of the evidence on the planet cannot supply you any guarantee that price will go in the way that they indicate. The truth is, that when forex trading, we’re working with probabilities. The way to discover the most success is usually to gather as much technical and fundamental information together to generate your decision. Not surprisingly being aware of what the experts senses as here in EUR/USD Forecast: investors non-committal to the near-term direction also can provide weight towards the justifications for a position you take and so we’re consistently searching with the thoughts of specialist traders from brokers through to trade rooms.
The shared currency witnessed broad-based selling on Thursday, dragging the EUR/USD pair farther away from over 2-week tops touched in the previous session. Minutes from the ECB’s last meeting revealed concerns over the risk of trade conflicts and sustainable inflation, all this against the backdrop of recent Euro appreciation. Adding to the dovish minutes, comments by ECB’s Coeuré, saying that the current monetary policy stance is appropriate, fueled expectations that the central bank is more likely to maintain status quo longer than anticipated and prompted some additional weakness.
Meanwhile, a goodish pickup in the US Dollar demand, amid easing geopolitical tensions after the US President Donald Trump, in his usual morning tweets, suggested that a military strike on Syria may not be imminent, further collaborated to the pair’s follow-through retracement on Thursday.
The selling pressure abated near the 1.2300 handle, with the pair now trying to stabilize around the 1.2325-30 region as investors now look forward to the final German CPI print for some fresh impetus. From the US, the release of Prelim UoM Consumer Sentiment and JOLTS Job Openings data might assist traders to grab some short-term opportunities on the last day of the week.
From a technical perspective, Wednesday’s rejection near the 1.2400 handle and subsequent fall on Thursday now seem to suggest that the pair’s post-NFP up-move might have already lost steam. A decisive break below the 1.2300 mark would reinforce the outlook and turn the pair vulnerable to head back towards testing the 1.2235 horizontal support before eventually dropping to the 1.2200 handle en-route near 3-month-old trading range support around the 1.2180 region.
On the flip side, any meaningful up-move is likely to confront some fresh supply near the 1.2370-75 region and is followed by the 1.2400 round figure mark. Subsequent attempted bullish moves might now be capped at a short-term descending trend-line resistance, currently near the 1.2430-35 region.