Despite starting the week higher, the EUR/USD pair trades at fresh daily low in the 1.0770 region after the release of German producer prices for March that fell by 1.7% compared with the corresponding month of the preceding year. Monthly basis, it decreased by 0.1% in March. Nevertheless, there's little going on in the forex board, with majors consolidating near their daily opening. The calendar will remain light for the rest of the day, anticipating limited moves across the board.
Technically, the 4 hours chart shows that the price of the EUR/USD pressures the 50% retracement of its latest bearish run, having been rejected last Friday from the 61.8% retracement of the same rally around 1.0840. In the same chart, the 20 SMA maintains a strong bullish slope below the current price, around 1.0730, whilst the technical indicators have lost their upward potential, but remain above their mid-lines. As long as the price remains below 1.0800, chances are of a downward extension towards the mentioned 1.0730 level, with an extension beyond this last probably finding some buying interest around 1.0710, the 38.2% retracement of the same rally. Above 1.0800 on the other hand, the pair can rally up to 1.0847, last Friday´s gains, whilst steady gains above this level should lead to a test of 1.0900.
View Live Chart for EUR/USD
Technically, the 4 hours chart shows that the price of the EUR/USD pressures the 50% retracement of its latest bearish run, having been rejected last Friday from the 61.8% retracement of the same rally around 1.0840. In the same chart, the 20 SMA maintains a strong bullish slope below the current price, around 1.0730, whilst the technical indicators have lost their upward potential, but remain above their mid-lines. As long as the price remains below 1.0800, chances are of a downward extension towards the mentioned 1.0730 level, with an extension beyond this last probably finding some buying interest around 1.0710, the 38.2% retracement of the same rally. Above 1.0800 on the other hand, the pair can rally up to 1.0847, last Friday´s gains, whilst steady gains above this level should lead to a test of 1.0900.
View Live Chart for EUR/USD
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