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Forex Market: EUR/USD daily forecast

During yesterday’s trading session EUR/USD traded within the range of 1.3778-1.3877 and closed at 1.3868.

At 6:16 GMT today EUR/USD was gaining 0.14% for the day to trade at 1.3886. The pair touched a daily high at 1.3887 at 6:15 GMT.

Fundamental view

At 14:00 GMT the Institute for Supply Management (ISM) is to report on manufacturing activity in the country. According to experts’ estimates, the gauge of manufacturing probably increased to 54.2 in April from 53.7 in the previous month. Values above 50.0 signify increased activity. In case market expectations are exceeded, the US dollar will receive support.

In addition, the initial jobless claims in the US probably fell to 319 000 in the week ended April 26th, from 329 000 a week ago, according to the median estimate by experts. The indicator measures the number of applications for unemployment benefits that are recorded each week in a report prepared by the Bureau of Labor Statistics in the United States. Initial application or (Initial Claim) means a completed document from an unemployed person before the local government, which is considered a claim for compensation or the possibility of compensation. The completion of the initial claim marks the beginning of a period in which the applicant receives unemployment benefits. The survey covers the number of applications registered in the previous week and is an important indicator concerning the health of the US labor market.

The data is due to be released at 12:30 GMT. In case initial jobless claims drop more than expected, this will heighten the appeal of the greenback.

Technical view

Screenshot from 2014-05-01 09:19:41

According to Binary Tribune’s daily analysis, in case EUR/USD manages to breach the first resistance level at 1.3904, it will probably continue up to test 1.3940. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4003.

If EUR/USD manages to breach the first key support at 1.3805, it will probably continue to slide and test 1.3742. With this second key support broken, the movement to the downside will probably continue to 1.3706.

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