EUR/USD Forecast: Pressuring the lower end of its range
|EUR/USD Current Price: 1.0858
- Crude oil prices remained under pressure and weighed on the market’s mood.
- Business sentiment in Germany improved, although the assessment of the current situation plunged.
- EUR/USD neutral-to-bearish, buyers are defending the downside around 1.0800.
The American dollar traded unevenly against its major rivals this Tuesday, with the EUR/USD pair recovering from a daily low of 1.0816, to close the day with modest losses around 1.0840. The shared currency was resilient to broad dollar’s demand, this last exacerbated by the continued decline in crude oil prices keeping global equities in the red. The pair flirted with the lower end of its latest range and bounced, suggesting increased buying interest ahead of the 1.0800 figure. The focus remains on crude oil prices.
Data released this Tuesday was mixed, as the German ZEW survey surprised with upbeat business confidence. The country’s Economic Sentiment recovered to 28.2 in April, while for the Union it printed at 25.2, also much better than anticipated. Nevertheless, the assessment of the current situation in Germany collapsed to -91.5 from -43.1. The US published Existing Home Sales, which decline in March by 8.5%, missing the market’s expectation. There won’t be relevant data from these economies on Wednesday.
EUR/USD short-term technical outlook
The EUR/USD pair is trading just above 1.0830, the 61.8% retracement of its latest daily advance. An intraday recovery met sellers near 1.0890, the 50% retracement of the same advance. The short-term picture skews the risk to the downside. In the 4-hour chart, the pair is developing below all of its moving averages, although their directional strength is limited. Technical indicators are neutral-to-bearish, the Momentum around its mid-line and the RSI at around 44.
Support levels: 1.0830 1.0790 1.0750
Resistance levels: 1.0890 1.0925 1.0960
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