EUR/USD has drifted upward as markets remain cautious. Another down day in stocks could boost the safe-haven dollar, in addition to dovish ECB comments. The four-hour chart shows that the currency pair is near overbought conditions. Two steps forward, one step back, and now another upswing? Not so fast. Euro/dollar has benefited from some calm in markets, yet that may change when trading on Wall Street begins. Concerns about inflation have been weighing on stocks – especially highly valued shares of tech companies – and there may be more room for the downside. The most significant concern is inflation. Investors thought that the Federal Reserve would stay lower for longer after the disappointing Nonfarm Payrolls report. However, high producer prices from China and some hawkish comments from Robert Kaplan, President of the Dallas Fed, changed their minds. And now, a fresh fall in stocks could boost the safe-haven dollar and send EUR/USD back down. The euro has issues of its own. Despite the eurozone’s accelerating vaccination campaign, members of the European Central Bank are pushing back against the idea of tapering bond buys, implying more euro-printing. While EUR/USD has room to fall on Tuesday, the moves may remain limited. Tensions remain elevated ahead of Wednesday’s all-important Consumer Price Index (CPI) figures from the US. Will inflation surge or remain tame? The release will likely trigger high volatility. US Consumer Price Index April Preview: The two base effects on inflation EUR/USD Technical Analysis Euro/dollar is trading above the 50, 100 and 200 Simple Moving Averages and benefits from upside momentum on the four-hour chart. On the other hand, the Relative Strength Index (RSI) is near 70. That means that any upside move could be limited if it sends the indicator above that level – thus entering overbought conditions. Resistance awaits at the May peak of 1.2180, followed by 1.2240 and 1.23, levels last seen early in the year. Support is at 1.2150, the April peak, and then at 1.2125 and 1.2075. Further down, 1.2050 and 1.2015 await EUR/USD bears. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Gold Forecast: XAU/USD retreats from multi-month tops, slides to $1,825 area FX Street 2 years EUR/USD has drifted upward as markets remain cautious. Another down day in stocks could boost the safe-haven dollar, in addition to dovish ECB comments. The four-hour chart shows that the currency pair is near overbought conditions. Two steps forward, one step back, and now another upswing? Not so fast. Euro/dollar has benefited from some calm in markets, yet that may change when trading on Wall Street begins. Concerns about inflation have been weighing on stocks - especially highly valued shares of tech companies - and there may be more room for the downside. The most significant concern is inflation.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.