EUR/USD: Downtrend resumes with stable forecasts – Danske Bank
EUR/USD Price Forecast: Needs breakout above 1.1825 for a fresh rally
EUR/USD weakens below 1.1800 as US–Iran ceasefire talks bolster US Dollar
While European markets pulled back as oil prices found renewed support, risk appetite on Wall Street was holding up rather well, with investors on Wall Street seemingly content to look past the ongoing noise out of the Middle East and instead focus on the broader macro picture. There's been a noticeable rotation back into equities in the last several days, alongside renewed interest in pro-growth and higher-yielding emerging market currencies – although this motion stalled today.
Summary:The March CPI print of 2.6 percent confirms that energy shocks are filtering into the broader economy, forcing the ECB to weigh aggressive rate paths against a cooling growth outlook. The EUR/USD pair struggled to find direction on Thursday after Eurostat confirmed that Eurozone inflation accelerated more than initially estimated in March, hitting 2.6% year-on-year.
EUR/USD climbed to 1.1817 on Thursday, marking its ninth consecutive session of gains without interruption. The major currency pair continues to hit six-week highs.
The Euro broke above the resistance level of the triangle formation and met the first target at 1.1800. Intraday level support starts from 1.1720 and 1.1600 while as long as the market holds above it, the advance could continue.
GBP/USD is edging higher, holding above 1.3550 and moving towards 1.3600, supported by US dollar weakness and stronger-than-expected UK GDP data.
EUR/USD stands above 1.1800 amid hopes of new peace talks in Iran
European currencies are maintaining an upward trajectory, having reached previously outlined levels amid sustained demand for the euro and the pound. The current advance is developing against a backdrop of gradually shifting market expectations and ongoing pressure on the US dollar.
There have been some conflicting reports from the Middle East today. Trump has just come out and said that Iran is about to reach an agreement, confirming earlier reports that two sides had agreed ‘in principle' on extending the truce.
The Euro broke above the resistance level of the triangle formation which could lead to a further advance toward resistances 1.1800 and 1.1920-60. Intraday level support starts from 1.1600 while as long as the market holds above it, the advance could continue.