Following an extremely quiet Asian session, majors are confined to limited intraday ranges, given that all major markets are closed due to the Easter Holiday. In the US is not a federal holiday, but Wall Street will be closed, which means little could be expected from the market today.
During the Asian session, Japan released its latest inflation figures, which was flat in February, with the headline National CPI up 0.3% compared to a year before, and in line with expectations. Excluding volatile food and energy prices, the CPI rose by 0.8% year-on-year. The readings gave the greenback a lift, fueling expectations of more easing coming from the BOJ
View the Live chart of the EUR/USD
But the EUR/USD pair remains mute around 1.1160, some 20 pips above this week low. Later on today, the US will release its second and final revision to the Q4 2015 GDP, and given that is the last revision, the report tends to have a limited impact, which will be even lower it the reading match previous and expectations, which in this particular case converge at 1.0%.
As for the technical picture, the pair has been developing inside a descendant channel ever since the week started, but late Thursday, the pair started testing the roof of the figure, more due to some downside exhaustion given the sharp weekly decline, than as a sign the bearish trend will now change course.
In the 4 hours chart, the 20 SMA continues heading south above the current level, while the technical indicators hold flat within negative territory, reflecting the poor volume seen on these last days of the week.
The immediate support comes at 1.1120, a major static price zone, and once broken, the decline may extend down to 1.1085 first, and 1.1040 then. To the upside, the pair needs to regain the 1.1200 level to be able to correct higher, with the next resistances at 1.1245 and 1.1290.
Latest updates on the EUR/USD Forecast
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