Price Forecast for EUR/USD: Bullish outlook is still in effect around 1.1300

Under pressure from the resumed demand for the US dollar (USD), the EUR/USD pair drops to about 1.1295 in the early European session on Thursday. A headwind for the key pair is created by the optimism surrounding the possible de-escalation of the US-China trade conflict, which lends some support to the greenback. Later on Thursday, traders will watch the US ISM Manufacturing Purchasing Managers Index (PMI) data.

Since the major pair is well-supported above the crucial 100-day Exponential Moving Average (EMA) on the daily chart, the technical picture for EUR/USD is still positive. The Relative Strength Index (RSI), which is above the midline at 55.85 and shows short-term bullish momentum, supports the upward momentum.

Positively, the April 28 high of 1.1425 marks the emergence of the first upside hurdle. A clear break above this level might gain further traction and target the April 22 high of 1.1547. The upper Bollinger Band boundary, 1.1621, is the critical resistance level farther north.

The EUR/USD initial support level in the bearish scenario is the low of April 29 at 1.1270. A breach of this level could drag the major pair toward the 1.1000 psychological level. The additional downside filter to watch is 1.0917, the lower limit of the Bollinger Band, followed by 1.0848, the 100-day EMA.

 

 

 

 

 

 

 

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