Market's mood has stabilized partially this Wednesday, as data coming from China showed an improvement in the overall business activity in March. The Caixin Composite PMI printed 51.3 from 49.4 in February, limiting stocks decline in local share markets. Nevertheless, equities in Asia and Europe are hovering around their openings, unable to find a clear direction as investors wait for FOMC Minutes, to be released later on today.
The US Central Bank is largely expected to provide a dovish stance, and after the latest wording from FED's head, Janet Yellen, a surprise is quite unlikely. An improvement in German Industrial Production has had little effect over the EUR, given the negative result of factory orders released on Tuesday.
View the Live chart of the EUR/USD
The American dollar trades slightly higher against most of its major rivals, although the EUR and the JPY lag, as investors remain cautious. The EUR/USD pair trades near Friday's low of 1.1333, the immediate technical support, and the 4 hours chart shows that the bearish tone has increased, given that the technical indicators head south within bearish territory, whilst the 20 SMA caps the upside near 1.1380.
The common currency has been seeing some steady demand, which means that the bearish potential is still limited. Anyway, below the mentioned support, the pair can begin to correct lower, and extend its decline down to 1.1280. So far this week, 1.1410 has attracted short term selling interest, so it will take a break above the level to see further gains today, towards the 1.1460 region.
Latest updates on the EUR/USD Forecast
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