The American dollar started this Monday with the positive tone seen by the ends of the previous week, correcting slightly lower during the Asian session, and resuming its advance following London's opening bell. The exception was the Japanese yen, which remains generally stronger against its major rivals.
Stocks are in the red, ahead of the release of the EU inflation figures for February, expected at 0.0% monthly basis, and 0.9% compared to a year before. Such negative data may actually support the EUR, as it will practically confirm that the ECB will increase its QE in its March meeting. Later on the day, the US will release its Pending Home Sales data, which if results better-than-expected, will likely help the greenback across the board, as it will be signaling the economy started to pick up again.
Technically, the risk is clearly towards the downside, as in the 4 hours chart, the price is developing below a bearish 20 SMA, whilst the technical indicators resumed their declines within bearish territory, with the Momentum indicator reaching fresh lows and the RSI indicator heading south around 36. Nevertheless, the pair needs to break below 1.0895, the immediate support, to be able to extend its decline down towards the 1.0840/50 region. Below this last 1.0810 comes next, and strong buying interest will likely surge if this last is reached.
The daily high stands at 1.0961, and further gains beyond it should see the pair extending up to 1.1000, while an upward acceleration above this last exposes the 1.1045 region.
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