Markets have opened with a quieter tone this Wednesday, with the greenback holding on to its recent gains against most of its major rivals, exception made by commodity related currencies. Stocks in Asia traded generally lower, as the US API crude oil report showed that stockpiles where up by 8.7 million last week, against previous gain of 1.5 million, rising concerns over a worldwide glut. But European share markets are off to a strong opening, with the German DAX trading above the 10,000 level, keeping the common currency limited towards the upside.
There's little in the macroeconomic calendar to take care of during the European session. Later on the day, the US will release its New Home Sales data for February, and EIA crude oil stocks, both generally expected to post negative surprises.
View the Live chart of the EUR/USD
As for the technical picture of the EUR/USD pair, it continues trading within a bearish channel, and below the 1.1200 figure, having extended its weekly slide down to 1.1179. Technical readings maintain the risk towards the downside, given that the price is below a strongly bearish 20 SMA, whilst the technical indicators remain well below their mid-lines, and particularly the RSI indicator maintains a sharp bearish slope around 40.
The immediate support comes at the 1.1160 region, and it would take a break below it to confirm a continued decline, down to the 1.1100/20 price zone. If the bearish pressure sends the pair below this last, the doors are then open for a test of the 1.1000 figure during the upcoming sessions.
Above 1.1200, on the other hand, the pair can advance up the 1.1240 region where the roof of the daily channel will likely attract selling interest.
Latest updates on the EUR/USD Forecast
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