EUR/USD Forecast: Bouncing modestly from sub-1.2000
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFEREUR/USD Current Price: 1.2029
- German Retail Sales fell by 4.5% MoM in January, much worse than anticipated.
- A modest advance in equities prevents the dollar from advancing further.
- EUR/USD is still at risk of falling towards February low at 1.1951.
The EUR/USD pair fell to a fresh two-week low of 1.1991, as the dollar retained its positive momentum throughout the first part of the day. A modest advance in European equities helps the greenback’s rivals ahead of the US opening, with the pair trading around 1.2030.
European data disappointed, as German Retail Sales fell by 4.5% MoM in January, while the year-on-year comparison came in at -8.7%. European inflation was up by 0.9% YoY in February, according to preliminary estimates, missing the market’s expectations. The pair hold on to gains, as equities stocks keep pressuring higher. The US has a light macroeconomic calendar as it will publish the February ISM-NY Business Conditions Index and March IBD/TIPP Economic Optimism.
EUR/USD short-term technical outlook
The EUR/USD pair remains below 1.2060, the 38.2% retracement of the November/January rally, which maintains the overall risk skewed to the downside. In the near-term, and according to the 4-hour chart, the pair is well below all of its moving averages, with the 20 SMA heading firmly lower below the longer ones. Technical indicators are bouncing from oversold readings but remain well into negative levels.
Support levels: 1.1970 1.1920 1.1875
Resistance levels: 1.2060 1.2100 1.2145
EUR/USD Current Price: 1.2029
- German Retail Sales fell by 4.5% MoM in January, much worse than anticipated.
- A modest advance in equities prevents the dollar from advancing further.
- EUR/USD is still at risk of falling towards February low at 1.1951.
The EUR/USD pair fell to a fresh two-week low of 1.1991, as the dollar retained its positive momentum throughout the first part of the day. A modest advance in European equities helps the greenback’s rivals ahead of the US opening, with the pair trading around 1.2030.
European data disappointed, as German Retail Sales fell by 4.5% MoM in January, while the year-on-year comparison came in at -8.7%. European inflation was up by 0.9% YoY in February, according to preliminary estimates, missing the market’s expectations. The pair hold on to gains, as equities stocks keep pressuring higher. The US has a light macroeconomic calendar as it will publish the February ISM-NY Business Conditions Index and March IBD/TIPP Economic Optimism.
EUR/USD short-term technical outlook
The EUR/USD pair remains below 1.2060, the 38.2% retracement of the November/January rally, which maintains the overall risk skewed to the downside. In the near-term, and according to the 4-hour chart, the pair is well below all of its moving averages, with the 20 SMA heading firmly lower below the longer ones. Technical indicators are bouncing from oversold readings but remain well into negative levels.
Support levels: 1.1970 1.1920 1.1875
Resistance levels: 1.2060 1.2100 1.2145
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.