EUR/USD Forecast: Bears giving it another try
|EUR/USD Current Price: 1.1108
- US inflation failed to impress, meeting the market’s expectations yearly basis.
- Trade tensions between the US and the EU weigh on the shared currency.
- EUR/USD turning bearish in the short-term, after meeting sellers around a critical Fibonacci level.
The EUR/USD pair is losing some ground this Tuesday, although still confined to a tight intraday range. The pair hit a high of 1.1146 on Monday and was unable to surpass it, despite the upbeat mood that prevailed in the Asian session. The positive sentiment faded during London trading hours.
News indicated that the EU Trade Commissioner Phil Hogan is heading to Washington today to meet US Trade Representative Robert Lighthizer to pour some cold water on the trade relationship between the two economies after US President Trump threatened to retaliate on French tax on US firms. Also, the White House announced it would include Switzerland in a currency manipulator watch-list.
Ahead of Wall Street opening, the US has just released the final version of December inflation. According to the official report, the annual CPI came in as expected at 2.3%, while the core reading also printed 2.3%, as expected. Monthly core inflation, however, missed the market’s expectations, rising by 0.1%.
EUR/USD short-term technical outlook
The EUR/USD pair pared its decline after unimpressive inflation figures, trading at around 1.1110. Measuring the decline between 1.1238 and 1.1084, the pair has topped at around the 38.2% retracement at 1.1145, now a relevant static resistance level. In the 4-hour chart, the price is currently below its 20 and 100 SMA while battling the 200 SMA, all of them lacking directional strength. Technical indicators have turned south, with the RSI already within negative levels, suggesting additional slides ahead.
Support levels: 1.1090 1.1065 1.1020
Resistance levels: 1.1145 1.1180 1.1220
View Live Chart for the EUR/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.