After ignoring oil's price behavior, currencies finally resumed trading alongside with the commodity on Tuesday, as a drop below $30.00 a barrel spurred concerns over slowing global demand. Stocks ended sharply lower worldwide and the EUR/USD pair advanced up to the 1.0930 region, with the common currency on demand amid its condition of funding currency.
Asian shares plummeted, but European ones are struggling to turn positive, as the commodity is holding above 30.00, while US futures are in the green at this time of the day. In the data front, the main event is still US Nonfarm Payrolls on Friday, and the pair is expected to be for the most choppy ahead of it.
Today, the services sector PMIs across Europe resulted generally disappointing, missing expectations and coming below December readings. The one for the EU however, remained unchanged at 53.6. The region will release its Retail Sales readings later today, while in the US, the ADP survey and services sector data will be the one more capable to affect the market.
View the Live chart of the EUR/USD
The EUR/USD pair trades a few pips above 1.0900, and the 4 hours chart shows that the price was unable to advance beyond the daily descendant trend line coming from December high of 1.1059, while the moving averages continue lacking directional strength, confined to a tight 20 pips range below the current level, and with the technical indicators turning south within positive territory.
The usual resistances are still in play, with 1.0930 and 1.0960, and only a clear acceleration beyond this last favoring a rally towards 1.1000. Below 1.0880 on the other hand 1.0845 and 1.0800 are the levels to watch today.
Latest updates on the EUR/USD Forecast
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