- EUR/USD pair is trading with a bullish bias at 1.1828 level while traders await CB Consumer Confidence.
- The Conference Board Inc. will release CB Consumer Confidence data during the US session with a negative forecast.
- Forex trading market participants may look for a buy limit above 1.1807 with an initial target of $1.1850 and $1.1890 levels.
The EUR/USD pair closed at $1.1795 after placing a high of $1.1810 and a low of $1.1782. The EUR/USD pair remained flat throughout the trading session on Monday. It gave null movement amid mixed market sentiments for the day. The EUR/USD pair was trading with a bullish bias at the 1.1828 level while traders await CB Consumer Confidence.
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The Dollar’s Weakness Driving Bulls in the EUR/USD
The US dollar index, which measures the greenback’s value against the basket of six major currencies, also moved into consolidation. It remained green near the 92.79 level, which kept heavy pressure on the EUR/USD pair. On the other hand, the rising risk appetite in the market kept supporting the currency pair EUR/USD, and hence, the pair remained in a tight range, giving null movement for the day.
The risk appetite in the market surged after the optimism from all around the world regarding the re-opening, and increasing vaccination rates came in front. The Brussels-Capital Region said that it has plans to achieve a 65% vaccination rate by the end of October to avoid the consequences of the fourth wave.
Brussels Giving vaccine at shopping malls and in supermarkets
To increase its vaccination rate, the health authorities in Brussels have started giving vaccine shots at shopping malls and in supermarkets. This move triggered optimism that the economic recovery will soon accelerate its pace, and risk appetite emerged in the market that pushed EUR/USD higher.
On the other hand, the World Health Organization showed its concerns on Monday about the rising transmission rates of coronavirus in Europe. According to the agency’s European director, Hans Kluge, there was an 11% increase in the number of deaths in Europe during last week.
Keeping with the rising transmission rate, the health agency expects about 236,000 deaths in Europe by December 1st. This prediction from WHO added stress to the single currency euro and the currency lost all of its gains for the day, which dragged the EUR/USD pair lower.
Economic Events Review
The German Prelim CPI for August declined to 0.0% against the anticipated 0.1%. It weighed on the euro and kept EUR/USD under pressure on the data front.
At 12:00 GMT, the Spanish Flash CPI for the year surged to 3.3% against the forecasted 3.0% and supported the single currency Euro. From the US side, at 19:00 GMT, the Pending Home Sales in July fell to -1.8% against the expected 0.5% that pushed EUR/USD higher.
The mixed data release from Europe also supported the consolidated move of the EUR/USD, and the pair remained range-bound throughout the trading session.
CB Consumer Confidence Ahead
The Conference Board Inc. will release CB Consumer Confidence data during the US session with a negative forecast. The economists expect a dip in CB Consumer Confidence from 129.1 to 122.9, which has a high potential to drive a buying trend in the EUR/USD pair.
EUR/USD Price Forecast – Daily Technical Levels
Support Resistance
1.1782 1.1810
1.1768 1.1824
1.1754 1.1838
Pivot Point: 1.1796
EUR/USD Price Forecast – Daily Technical Analysis: CB Consumer Confidence Ahead
The EUR/USD is trading sharply bullish above the 1.1800 resistance level. This resistance level is extended by a double top pattern that we can see on the 2-hour chart. The closing of candles above this level could drive an additional bullish trend until the 1.1857 resistance level.
On Tuesday, the EUR/USD pair is trading with a bullish bias at the 1.1828 level while traders await CB Consumer Confidence. On the bearish side, the breakout of the 1.1807 support level could lead the EUR/USD pair towards the 1.1749 level. The 50 days EMA (Exponential Moving Average – Red Line) is held at 1.1807, supporting a bullish trend in the EUR/USD pair.
On the flip side, the oscillator indicator Stochastic RSI holds in a buy zone, demonstrating a buying trend. Therefore, Forex trading market participants may look for a buy-limit above 1.1807 with an initial target of $1.1850 and $1.1890 levels. Alternatively, sell trades can be taken below the $1.1857 level to target $ 1.1807. All the best!
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