The American dollar resume its decline during the past Asian session, as the Japanese yen accelerated its advance, with the USD/JPY reaching 114.20 a level not seen since November 2014. The EUR/USD pair advanced up to 1.1237 on dollar's broad sell-off, but eased with the European opening, weighed by poor German data. The country's trade balance showed a surplus of €18.8B against expectations of €20.2B, while imports and exports decline by 1.6% in December. Industrial production in the country fell during the same month by 1.2%, indicating the EU's largest economy continues to slow its growth.
View the Live chart of the EUR/USD
Technically, the pair presents a limited downward potential according to the 4 hours chart, given that the price is holding above its 20 SMA, and well above the 23.6% retracement of the latest bullish run. at 1.1145, the immediate support. In the same chart, the RSI indicator heads lower around 60, barely correcting overbought readings, while the Momentum indicator aims slightly lower in neutral territory.
Below the mentioned support, the pair can extend its decline down to 1.1085, Monday's low and the38.2% retracement of the same rally, although buying interest will likely surge around this last. Another acceleration above 1.1200 on the other hand, can see the pair retesting the 1.1245 level, and even extend beyond it, towards the 1.1290 region.
Latest updates on the EUR/USD Forecast
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