- EUR/USD has been trading in a 50-60 pip range for the last three days.
- Dollar Holds Firm Amid Positive Market Mood
- The war between Russia and Ukraine continues, although peace talks stall.
- EUR/USD Price Forecast: Bias To The Downside, But With EUR/USD Trading Above 1.0960, Upside Risks Remain.
The shared currency goes up and down on Thursday in the North American session, courtesy of a positive market mood, while the general strength of the US dollar helps the greenback hold the pair EUR/USD confined to the area of 1.0960-1.1000. At press time, EUR/USD is trading at 1.1000.
US dollar remains resilient amid risk appetite
Risk appetite improved in the American session, as reflected in the rise in US stocks, unlike European stocks, which fluctuated. The US dollar has been supported throughout the day, as reflected in the US Dollar Index, which rose 0.16% to 98.766, supported by rising US Treasury yields, with the benchmark bond yield at 10 years rising up to four basis points, standing at 2,348%.
On the geopolitical front, hostilities between Russia and Ukraine continue, while peace talks languish. Meanwhile, the two-day NATO summit has yet to provide any EUR/USD tradable news. It is worth noting that according to a US official, US President Joe Biden supported the NATO surge on the Eastern Front. In addition, Biden and the European members of NATO assess the risks of Russia launching a biological, chemical or nuclear attack. In addition, Biden called for Russia to be removed from the G-20.
Aside from this, the Fed members have continued to grab the headlines. Chicago Fed President Charles Evans said he is “comfortable” with 25 bps hikes in the fed funds rate, but remains “open” to 50 bps hikes if needed. Earlier, Minnesota Fed President Neil Kaskari said 10-year Treasury yields remain low and emphasized the risk of overdoing rate hikes.
On Friday, the Eurozone economic calendar will reveal March IFO business, current conditions and expectations for Germany. On the other hand, February Pending Home Sales, University of Michigan Consumer Expectations for March and Fed Speakers would grab the headlines.
EUR/USD Price Forecast: Technical Outlook
The EUR/USD pair remains biased to the downside. However, as shown on the daily chart, in the EUR/USD price action of the past two days, the pair failed to break below Tuesday’s daily low at 1.0960, leaving EUR/USD exposed to a move. bullish.
If that scenario plays out, the first resistance for the EUR/USD would be 1.1043. Break of the latter would expose the parallel Pitchfork line between the top and the middle around 1.1080, followed by 1.1100. On the other hand, the EUR/USD path of least resistance, the first support, would be 1.0960. A decisive break would expose the March 11 low at 1.0901, followed by the yearly low at 1.0806.
Source: Fx Street