EUR/USD Forecast: US Data Boosts Dollar, Bearish Momentum Continues
- Positive US economic data drives the Dollar higher in the forex market.
- Stock markets rally on US news, easing recession fears.
- EUR/USD hovers around 1.0950 with strong bearish momentum.
The EUR/USD pair maintained levels above 1.1000 on Thursday, staying within a narrow range. Following the release of the US July Consumer Price Index, the pair briefly touched 1.1046 before retreating. Despite inflation easing slightly, markets interpreted the data as a signal for a potential interest rate cut by the Federal Reserve.
US Retail Sales for July exceeded expectations, boosting stocks and keeping bond yields steady. The Dollar initially weakened but gained ground as investors digested the implications of the data.
With no significant European economic news, the focus was on the US, where positive data on Retail Sales and Jobless Claims lifted market sentiment. This pushed the Dollar higher and helped Wall Street futures rally.
EUR/USD Technical Analysis
EUR/USD is trading near 1.0950 with a bearish bias. Daily indicators suggest further downside, although the pair remains above key moving averages. On the 4-hour chart, the bearish outlook is even stronger, with indicators pointing lower and the 20 SMA acting as resistance at 1.0970.
Key Levels:
Support: 1.0950, 1.0900, 1.0860
Resistance: 1.0970, 1.1005, 1.1045
Analysis: Positive US data continues to support the Dollar and weigh on EUR/USD. Investors should monitor upcoming economic releases and Fed announcements for further direction in the forex market.