The common currency was unable to benefit from an improved market sentiment during Asian hours, and continues struggling to hold above the 1.1000 level against the greenback. The RBA left rates on hold at the beginning of the day, weighing on the dollar, yet the European opening is seeing some demand of the American currency.
The European calendar is quite empty during the ongoing session, with only Spain reporting its unemployment change for October, much worse than expected. Later today, the US will release its ISM New York Index and Factory Orders, hardly big market movers, but still eyed to measure the health of the local economy.
View the Live chart of the EUR/USD
The EUR/USD pair trades around 1.1010, and the 4 hours chart shows that the price is pressuring its 20 SMA, while the Momentum indicator continues retreating from overbought territory, and is about to cross its mid-line towards the downside. In the same chart, the RSI is already entering negative territory, heading south around 47, all of which supports additional declines on a downward extension below 1.0995. The next support comes around 1.0950, with a break below it exposing the 1.0900/20 price zone.
To the upside, the immediate resistance comes at 1.040, a short term descendant trend line, followed later by 1.1080/90, a strong static resistance, where selling interest has been surging ever since breaking below it. It would take a clear recovery above this last to deny the bearish tone during the upcoming sessions.
Latest updates on the EUR/USD Forecast
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