The EUR/USD pair trades mute above the 1.1300 figure this Tuesday, having advanced up to 1.1344 so far today. Data coming from Europe resulted mixed, as the ZEW survey showed that assessment of the current situation decreased in April, but he economic sentiment improved for Germany and the EU, as latest positive data coming from China, eased concerns over a global economic slowdown.
View the Live chart of the EUR/USD
Also, and in February, the current account of the euro area recorded a surplus of €19 billion, while January readings were revised to €27.5B. Finally, Construction output in the region fell by 1.1% in the same month, well below the previous 3.6%.
The common currency, however, failed to react to the data, and trades near its daily high, still unable to clearly overcome the 1.1330 region, which has been a strong support in the past two weeks.
The pair presents a limited bullish potential, as in the 4 hours chart, the technical indicators have turned lower after a period of consolidation within bullish territory, whilst the price continues being trapped between its moving averages, with the 20 SMA heading slightly higher below the current price and the 100 SMA converging with the current price.
The EUR/USD pair lacks directional strength at the time being, although the downside seems well limited, given market's positive mood. Some follow through beyond the daily high should see a quick extension towards the 1.1390/1.1420 region, whilst above this last, the pair can retest the 1.4060 price zone.
The key support comes at 1.1270, as only below this last the pair will turn short term bearish, towards the 1.1220 level, the 38.2% retracement of the latest daily bullish run.
Latest updates on the EUR/USD Forecast
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