EUR/USD Forecast: 1.1120 Now Possible

EUR/USD Forecast: 1.1120 Now Possible

19 May 2016, 11:44
Roberto Jacobs

EUR/USD Forecast: 1.1120 Now Possible

The EUR/USD pair extended its decline down to 1.1203 this Thursday, surpassing April´s low of 1.1215, and trading barely above this levels in the European morning.  The ECB will release the Minutes of the latest meeting in a couple of hours, but no surprises are expected from there, given that the Central Bank will likely maintain the status-quo.


The greenback maintains its bullish tone across the board, after the release of FOMC Minutes, which put back on the table a June rate hike, although the Pound is an exception, sharply high on self strength. 

During the US session, the country will release its weekly unemployment figures and a minor manufacturing index, but attention will likely center in FED's speakers, with Stanley and Dudley scheduled in different events.

In the meantime, the pair has bounced a couple of times from the 1.1200 region, suggesting some short term buying interest is still trying to defend the level. But in the 4 hours chart, technical readings are aligned towards the downside, and the pair has been developing below the 1.1240/50 region, the immediate resistance, supporting some further declines for today. A break below 1.1200 then, should see the pair quickly extending down to 1.1160, while below this last 1.1120 is next.

Above the mentioned resistance on the other hand, the pair can recover up to the 1.1280/1.1300 region, where selling interest is expected to resurge.


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