Forex Market: EUR/USD daily forecast

During Friday’s trading session EUR/USD traded within the range of 1.3491-1.3536 and closed at 1.3526.

At 6:16 GMT today EUR/USD was adding 0.07% for the day to trade at 1.3535. The pair touched a daily high at 1.3549 at 4:30 GMT, breaching the first key resistance.

Fundamental view

Euro zone

At 8:00 GMT Italy’s National Institute of Statistics is expected to release a report on industrial new orders in May. The annualized new orders rose 6.2% in April, while in monthly terms the indicator registered a 3.8% increase. It measures the change in value of new orders, received by industrial sector companies, for delivering a variety of products. Only enterprises with over 20 employees are included in the survey. New orders are closely related with future industrial activity. In case the indicator rose in value more than expected, this would provide support to demand for the euro.

United States

At 12:30 GMT today, the Federal Reserve Bank of Chicago will publish its Chicago Fed National Activity Index (CFNAI) for June. In May, the index came in at 0.21.

The Chicago Fed National Activity Index is a gauge of overall economic activity and related inflationary pressure and is estimated each month. The CFNAI is released at 12:30 GMT on scheduled days, normally toward the end of each calendar month.

A value above the key level of zero indicates that the US economy is expanding at its historical trend rate of growth, while positive values are indicative of above-average growth. At the same time, negative values indicate below-average growth.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.3518. In case EUR/USD manages to breach the first resistance level at 1.3544, it will probably continue up to test 1.3563. In case the second key resistance is broken, the pair will probably attempt to advance to 1.3589.

If EUR/USD manages to breach the first key support at 1.3499, it will probably continue to slide and test 1.3473. With this second key support broken, the movement to the downside will probably continue to 1.3454.