Euro Exchange Rate News Index

The euro (Currency:EUR) is enjoying firm gains against a host of key exchange rates today; the outlook for the euro remains positive with the currency continuing to benefit from strong momentum trading.

The euro dollar exchange rate is 0.18 pct higher at 1.2957.
The euro pound exchange rate is 0.27 pct up on last night's closing level at 0.8585.
The euro Australian dollar exchange rate is 1.1 pct higher at 1.3414.

(Please note: These are spot references - your bank will affix their own discretionary spread to the figure. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please find out more here.)

The immediate outlook for the euro was strengthened early on Friday after the Gfk German consumer climate index rose unexpectedly in May, ticking up to 6.5 from a reading of 6.2 the previous month. Analysts had expected the index to remain unchanged this month.

Turning to the price charts for insights into where the Euro could be headed next we see:

The euro dollar exchange rate outlook is currently being dictated to by a mixed chart - the short-term setup (2-6 weeks) shows EUR/USD to be evenly matched. However, we note that momentum could be returning towards the euro with 4 bullish events outweighing 2 bearish events on the pair's charts.

However, analyst Craig Erlam at Alpari cautions that he is not convinced this is the time to throw one's money behind the euro. Erlam says:

Live EUR/USD Chart


Exchange Rate
Forecasts 2013:


"We may have seen a rally in this pair on Thursday, but I’m yet to see anything to change my bearish outlook. In order for this to change, I’ll need to see a significant break above 1.30, a huge resistance level for a number of reasons.

"Firstly we have the 50 fib level, which the pair bounced perfectly off on Wednesday, which suggests there was a large number of profit taking and sell orders at this level.

"Around this level we also have both the 50 and 200-day SMAs, a break above which would be extremely bullish for the pair. Finally we have the middle bollinger band on the daily chart, which has also previous acted as a key support and resistance level."

According to Erlam 1.3 is key. "Another failure to break above 1.30 would be quite bearish for the pair. If it does break above here, then it could mark the start of the next uptrend, with the next target  being the upper end of the range it traded in last month, around 1.32," says the analyst.

The euro pound outlook is clearer than that facing the euro dollar.

The 2-6 week charts show 6 bullish events outweighing just two bearish events; the bearish events were formed on the 26th of April suggesting their irrelevance.

According to Recognia Inc, the next key hurdle to cross ahead of any further substantial gains is at 0.8634.

The euro Australian dollar outlook is positive - the currency pair is on the march higher with 6 bullish events outstripping 2 bearish events.

The 20th of May saw the formation of a bearish RSI (Relative Strength Indicator) at 1.3137. The RSI is above 70 suggesting the currency pair's cruise higher could be over-heating. The implication here is that a pullback is due.