- The EUR/USD is trading above the 1.1000 level with a decent gain.
- On Tuesday, the dollar extended its downward trend.
- Germany’s GfK consumer climate index fell to -15.5 in April.
- EUR/USD rallied to a 2-day high near 1.1020 on Tuesday as sentiment on the single currency improved.
On Tuesday, the EUR/USD price is up for the second consecutive session, convincingly trying to break through the 1.1000 level.
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Greenback pares gains
As the dollar resumes its proposed bias, the pair can rally from Monday’s lows around 1.0940 amid a modest improvement in risk mix and a resumption of the uptrend in German 10-year bond yields, which are approaching 0.65% for the first time since May 2018.
Russia’s aggression to continue
In the meantime, Russian and Ukrainian officials will meet again in Turkey today amid renewed hopes for a possible negotiated settlement to Ukraine’s military conflict.
GfK’s consumer confidence index fell to -15.5 in April in the domestic market. Across the pond, the Conference Board will measure consumer confidence, housing data, and a speech by Fed’s J. William.
What’s next to watch for EUR/USD price analysis?
In a reaction to the weakening dollar, the EUR/USD partially recovers its recent weakness. Likely, rumors that the ECB will initiate a new economic cycle will fuel periodic spurts in euro strength later this year. In contrast, higher yields in Germany, higher inflation, a decent pace of economic recovery, and benign results will also support fundamentals in the region.
Other than that, US NFP figures will remain the key event to watch this week. We expect weaker figures amid inflation pressure and war fears.
EUR/USD price technical analysis: Bulls in charge above 1.1000
The EUR/USD price fell in the Asian session around 1.0970 area but found some subsequent buying and managed to jump above the key 1.1000 mark. The 4-hour chart shows a widespread up bar with a high volume closing above the 100-period SMA. Meanwhile, the 20 and 50 SMAs are making a bullish crossover.
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If the pair finds acceptance above the 1.1000 level, it will head towards 1.1080 ahead of 1.1135, the previous swing high.
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Saqib Iqbal
