Forex. EURUSD trading forecast for today, April 16
The Euro/Dollar currency pair fell to the support level of 1.1970.
As expected, on Thursday, the quotes could not overcome the strong resistance of 1.2000 and rolled back a little. The US Dollar Index, which measures the value of a currency against a basket of its major rivals, bounced back from recent lows in the 91.5 area. After falling to new four-week lows, the US Dollar Index managed to gain some momentum on the back of overall consolidation and lower yields, contrary to recent robust data from the US. In fact, the 10-year Treasury yield fell below 1.6%, despite better-than-expected results on key fundamentals.
USD failed to gain momentum after retail sales rose 9.8% in March and underlying sales increased 8.4%. In addition, weekly jobless claims rose by 576,000 (the lowest level in a year), and the Philadelphia Fed's PMI rose to 50.2 points in April. On the other hand, last month, both industrial and manufacturing production strengthened below forecasts by 1.4% and 2.7%, respectively. In general, the US economy feels more confident than the rest, but the dollar does not yet get a pronounced advantage from this.
EURUSD Trading Signal
In the forecast, the Euro/Dollar is expected to decline to 1.1900.