Forex. EUR/USD trading forecast for today, May 11, 2021
On Monday, the Euro/Dollar exchange rate fell to the support of 1.2150.
The slight decline was caused by a technical adjustment after a strong increase at the end of last week. The European Union published the Sentix investor confidence index for May, which rose to 21 points and significantly exceeded expectations. In general, the EUR/USD forex pair may continue to grow, despite some overbought in the short term. Weak US employment data for April changed the balance of power in the market, in the near future, Dollar will again be vulnerable against other assets. Based on the results of just one unsuccessful release, it is too early to talk about revising growth forecasts, but market participants are no longer so confident in the unconditional advantage of the US economy.
Chicago Fed President Charles Evans acknowledged Monday that Friday's jobs data was definitely unexpected. The Fed will have to look even more closely at how wages will affect inflation over time. Evans also noted that the short-term growth of the consumer price index to the level of 2.5% does not bother the regulator, since inflation will eventually return to 2%. The official reiterated that the Fed will need some time to see enough data to change monetary policy and reiterated the position of keeping interest rates low for a long time.
Signals for trading EUR/USD currency pair
The forecast assumes a decline in the Euro/Dollar exchange rate to the levels of 1.2125, 1.2100 and 1.2075.