EUR/USD kicked off the day gathering some fresh bids after the release of robust Chinese data. The data surprised the market with above-the-consensus Chinese March Retail Sales, Industrial Production and, Gross Domestic Product figures. Following the sound reports, the euro climbed 29 pips, ranging from the support line of 1.1280 levels to 1.1309 levels. Notably, the pair broke the strong 1.1307 resistance and was heading to breach the next 1.1312 resistance level.
The pair may sustain the bid tone, knocking off the stubborn 1.1315 resistance line today. But, this breakthrough might only happen if the upcoming euro economic events strike above estimates.
The upbeat Chinese data creates new hopes to improve the current global economic structure. In the meanwhile, the greenback computed against its six major rivals was 0.22 percent down, during the Asian session.
Key EUR/USD Impacting Events:
The Eurostat will publish the Consumer Price Index (CPI) for March as follows:
- The Core CPI (Both YoY & MoM): The core index will not include food, energy, alcohol, and tobacco as they are volatile to prices. The analyst expects the (both YoY & MoM) index to come around 0.8 and 0.3 percent respectively.
- CPI (Both YoY & MoM): The consensus remains inline towards YoY index with 1.4 percent while they expect higher MoM CPI with 1.0 percent than previous 0.3 percent.
The Bureau of Economic Analysis and the U.S. Census Bureau will broadcast the Trade Balance for February. Over this, the consensus estimates fewer deficits up to negative $53.7 billion than the previous negative $51.1 billion.
Fed’s James Bullard is expected to address, providing an overview of the US monetary policies. In his last speech, the President had discussed on Normalization and its challenges to the economy.
The US Federal Reserves will release the Beige Book reports for 12 Federal Reserve Districts.
The report would outline the total economic growth of the country which tends to further impact USD.
The EUR/USD remained in the upper vicinity near 1.1279 levels, heading towards the strong resistance line of 1.1325 levels. Despite that, the pair was drifting in the upper region of the Bollinger bands (BB) revealing a bullish trend. From the Simple Moving Average (SMA) perspective, the pair traded above most of the significant SMAs, hinting an uptrend in its future movements. However, the near-by trend generator 21-day SMA moved coinciding the EMA of the BB.
This article was originally posted on FX Empire
More From FXEMPIRE:
- EUR/USD Daily Price Forecast – The Euro Pair Aroused Amid Sanguine Chinese Data
- New Zealand Dollar Plunges after Inflation Comes Up Short; RBNZ Rate Cut Forecast for May
- Natural Gas Price Prediction – Prices Continue to Slide but are Oversold
- European Equities Will China Data Spoil the Party?
- USD/JPY Fundamental Daily Forecast – Bullish Tone, but Light Pre-Holiday Trade Keeping Lid on Prices
- US Stock Market Overview – Stocks Rally, Led by Semis and Financials