EUR/USD Forecast: Back to Nowhere Land
The EUR/USD eased from 1.4446, the high achieved late Wednesday, reaching a daily low of 1.1403 with the European opening. Generally speaking however, major currencies pairs continue lacking directional strength, and particularly the EUR/USD, has been confined to a tight 100 pips range ever since the week started.
So far today, Germany released it Wholesale Price index data, up 0.3%
monthly basis and stretching the decline to -2.7% compared to April
2015. Later today, the US will release its weekly unemployment claim
figures, and a couple of FED's members will be on the wires, but for the
most, macroeconomic attention is centered on Friday's releases, with
the US will offer its PPI and Retail Sales data, and Europe will release
the first quarter GDP for Germany and the EU.
In the meantime, the technical picture is neutral, as in the 4 hours chart, the technical indicators head nowhere around their mid-lines, whilst the price stands a few pips above a flat 20 SMA, and back below the 50% retracement of its latest bullish run. The ongoing decline can extend down to the 1.1360/70 region, the base of this week range, and a downward acceleration below the level can see the pair extending down to the 1.1320/30 region.
Back above 1.1420 on the other hand, the rally can extend up to 1.1460, where selling interest is expected to contain the advance.