The American dollar is up across the board as risk appetite took over the financial world, weighing particularly on the safe-havens JPY and Gold, but also pushing the EUR lower, lately working as a funding currency. Stocks are strongly up across the board and the trigger of this recently born optimism is China, after the release of March trade balance figures.
According to official data, exports rose by 11.5% while imports decreased less-than-expected, by 7.6% yearly basis, while the trade balance came in at $29.86bn against previous $32.59bn. Data suggest that the economic slowdown seen late 2015 may have started to recede in the first quarter of this 2016.
Later on today, the US will release its latest Retail Sales and PPI figures, which if positive, may keep the dollar up for the rest of the day.
View the Live chart of the EUR/USD
In the meantime, the EUR/USD pair trades at the base of its latest range, pressuring the 1.1330 region and with a strong bearish tone coming from the 4 hours chart indicators, which head sharply lower near oversold levels. A downward acceleration below the 1.1320/30 region should lead to a continued decline towards the 1.1280 level first, en route to the 1.1240/50 price zone, a strong static support.
The upside seems limited by 1.1380 now, the immediate resistance, but it will take a break above 1.1420 to see an intraday change in the dominant bias, and the price retesting the 1.1460 region.
Latest updates on the EUR/USD Forecast
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