- German Prelim CPI surged to 0.9% against the forecasted 0.6% and supported the single currency Euro.
- Advance GDP for the quarter declined to 6.5% against the estimated 8.5% and weighed on the U.S. dollar.
- Forex trading market participants may look for a buy position above the $1.1877 level to target the $1.1920 level.
The direct currency pair EUR/USD closed at $1.1886 after placing a high of $1.1894 and a low of $1.1840. The EUR/USD rose for the 5th consecutive session on Thursday and remained near 3-weeks high level. EUR/USD price forecast remains bullish amid ongoing weakness in the U.S. dollar and the renewed strength in Euro.
German Unemployment Change Slips, Pushing EUR/USD Towards $1.1900
The shared currency Euro was strong across the board on Thursday as the macroeconomic data from European Union came in favor of it. The German Unemployment Change dropped in June and supported the single currency Euro as it represents the biggest economy of the European Union.
German Prelim CPI Beat Economists Forecast
For July, the German Prelim CPI surged to 0.9% against the forecasted 0.6% and supported the single currency Euro that pushed EUR/USD higher.
At 12:00 GMT, the Spanish Flash CPI for the year rose to 2.9% against the projected 2.7% and supported Euro that added strength in the currency pair EUR/USD.
The Spanish Unemployment Rate dropped to 15.3% against the predicted 15.1% and weighed on Euro that capped further loss in EUR/USD. At 12:55 GMT, German Unemployment Change dropped to -91K against the forecasted -29K and supported the single currency Euro that pushed EUR/USD higher.
Weaker Advance GDP Figure Drive Bulls in EUR/USD
At 17:30 GMT, the Advance GDP for the quarter declined to 6.5% against the estimated 8.5% and weighed on the U.S. dollar. At the same time, the Unemployment Claims surged to 400K against the predicted 382K.
The Advance GDP Price Index for the quarter surged to 6.0% against the anticipated 5.4% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales for June dropped to -1.9% against the expected 0.1%, adding further strength in the EUR/USD.
European Central Bank Monetary Policy Meeting Accounts
The European Central Bank released its monetary policy meeting accounts on Thursday. The ECB considered that price stability was best maintained by aiming for a 2% inflation target over the medium term.
ECB also stated that it could call for more persistent use of the ECB’s monetary policy instruments when the rates were closed to the effective lower bound. This might also need a transitory period where inflation would remain above the target of 2%. Though they did not contain any unexpected or new information, they still supported the single currency Euro and pushed EUR/USD higher.
EUR/USD Forecast – Technical Levels: Immediate Support $1.1870
Support Resistance
1.1852 1.1906
1.1820 1.1926
1.1799 1.1959
Pivot Point: 1.1873
EUR/USD Price Forecast – Daily Technical Analysis: Next Target 1.1920
EUR/USD price forecast remains bullish over the $1.1870 support level. On Friday, the EUR/USD’s bullish bias continues to dominate the market. It has closed a Doji candle above 1.1870 level, and right after that, it’s looking to close a bullish engulfing.
This bullish engulfing candle can lead the EUR/USD price further higher until the 1.1925 level. Further breakout of 1.1925 level can lead the EUR/USD pair towards 1.1965 level.
On the 4-hourly chart, the 50 days EMA (Exponential Moving Average – Red Line) extends support at $1.1840 levels. Therefore, the breakout of the 1.1870 level can lead the EUR/USD pair towards the 1.1840 level.
Stochastic has entered the overbought zone on the leading indicator side, and it can lead the EUR/USD towards the 1.1923 level.
Therefore, the Forex trading market participants may look for a buy position above the $1.1877 level to target the $1.1920 level. Conversely, selling can be seen upon breakout of $1.1870 level today. All the best!
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