Forex forecast

EUR/USD Current Price: 1.1368

07.04.2016 15:25:14

The EUR/USD pair extended its weekly rally up to a fresh yearly high of 1.1453 during the Asian session, dominated by broad dollar's weakness as the yen soared to fresh multi-month highs against its American rival. The European opening however, saw the dollar clawing back with the EUR/USD pair retreating towards the 1.1360/70 region, its comfort zone ever since the week started, as ECB officers defended the ongoing easing policy and suggested they will maintain the aggressive stance as long as required. Ahead of the US opening, the country released its latest weekly unemployment claims, which declined to 267K in the week ending April 1st. The four-week average however, surged to 266K, although the market paid little attention to the release. 

Later on today, both Draghi from the ECB and Yellen for the FED are scheduled to speak in different events, but given the continued flood of info coming from policy makers, they have reduced chances to produce a strong impact in the market. 

Technically, the EUR/USD pair 1 hour chart presents a negative tone, given that the price is currently developing below its 20 and 100 SMAs, whilst the technical indicators remain below their mid-lines. In the 4 hours chart, the price is currently below a horizontal 20 SMA, whilst the technical indicators have turned flat within negative territory, in line with the shorter term perspective. Nevertheless, bulls are not ready to give up, and dips towards 1.1330 in the short term will probably attract buying interest.

Support levels: 1.1330 1.1280 1.1245

Resistance levels: 1.1420 1.1460 1.1500