EUR/USD Price Forecast: Near-Term Bias Turns Negative On Breakdown Below 1.1655

The EUR/USD pair extends its losing streak for the fourth trading day on Friday, trading 0.15% lower to near 1.1653 during the Asian trading session. The major currency pair faces selling pressure as the US Dollar (USD) extends its advance, following positive outcomes of the meeting between United States (US) President Donald Trump and Chinese leader Xi Jinping on Thursday.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% higher to near 99.00, the highest level seen in two weeks.

On Thursday, the comments from both US President Trump and Chinese leader Xi indicated that trade relations between the two will improve hereon, and both stressed that the Strait of Hormuz should remain open.

Meanwhile, firm expectations that the Federal Reserve (Fed) will not deliver an interest rate cut this year are also strengthening the US Dollar.

In the Eurozone, a majority of economists in a Reuters poll have anticipated that the European Central Bank (ECB) will deliver an interest rate hike in the June policy meeting.

EUR/USD technical analysis

EUR/USD trades lower at around 1.1653 in the Asian trade. The pair holds a bearish near-term bias as spot holds beneath the 20-day Exponential Moving Average (EMA) at 1.1710. The confirmation of a Double Top formation breakdown after sliding below the April 30 low of 1.1655 warns of an extension of the ongoing decline.

The Relative Strength Index (RSI) around 44 leans lower, hinting that downside pressure is still in play rather than exhausted.

On the topside, initial resistance is located at the 20-day EMA near 1.1710, which needs to be reclaimed to ease immediate bearish pressure and open the way for a more sustained recovery towards 1.1800. Looking down, the pair could slide further towards the April 8 low at 1.1589 and the April 6 low of 1.1505.